Economists calculate profits as total revenue minus:
Ans: Explicit and implicit costs
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
An increase in the employment tax should have a relatively small effect on output if the labor supply curve
A) is perfectly horizontal. B) has a positive slope. C) is relatively flat. D) is relatively stee
Your friend Dimitre tells you that he thinks that his favorite basketball team has a 70% chance of winning the next game. This is an example of a(n)
A) objective probability. B) subjective probability. C) risk-averse statement. D) Friedman-Savage preference.
Given an opportunity cost of 10 bicycles per 1 sewing machine in Germany and 20 bicycles per 2 sewing machines in Hungary,
a. Neither country has a comparative advantage in the production of either good. b. Germany has a comparative advantage in the production of sewing machines. c. Germany has an absolute advantage in the production of sewing machines. d. Hungary has an absolute advantage in the production of bicycles. e. Hungary produces more bicycles than Germany does.