Generally when calculating profits as total revenue minus total costs, accounting profits are larger than economic profits because economists take into account:
A. only explicit costs.
B. both explicit and implicit costs.
C. only implicit costs.
D. Both types of profits are always equal because they account for the same costs.
Answer: B
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What unethical methods might business communicators be tempted to use to make their case stronger?
a. Ignoring "What if?" questions b. Fudging the facts c. Omitting crucial information d. Exaggerating the point e. Gaining attention with a compliment
The theory that monetary policy conducted on a discretionary, day-by-day basis leads to poor long-run outcomes is referred to as the
A) adverse selection problem. B) moral hazard problem. C) time-inconsistency problem. D) nominal-anchor problem.
In 2001, the percent of total employment in the manufacturing, mining, and construction sector equaled
a. less than 20 percent. b. 30 percent. c. 40 percent. d. 60 percent.
What happens when consumers in the economy start to spend less, perhaps because they become worried about the future?
A. Savings rises, causing increases in investment that boost GDP. B. The demand for dollars falls, causing the exchange rate to fall and exports to rise. C. Prices fall, causing consumers to start spending again. D. The incomes of other people fall, causing those people to spend less as well.