A firm that has positive economic profits has accounting profits that are
A. zero.
B. positive.
C. negative.
D. indeterminate without more information.
Answer: B
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Compare the distribution of income in the United States with the distribution of income in other high-income countries
What will be an ideal response?
(a) What happens to the fundamental value of a country's exchange rate when it raises its money supply in a fixed exchange-rate system?
Does this make the currency overvalued or undervalued if originally the official rate equaled the fundamental value? (b) What happens to the fundamental value of a country's exchange rate when the foreign country raises its money supply? Does this make the currency overvalued or undervalued if originally the official rate equaled the fundamental value? (c) So, if a country wants to maintain its official rate equal to its fundamental value, what must it do when the foreign country raises its money supply? What happens to inflation?
The passive approach to resolve a contractionary gap results in a decrease in the price level, and the active approach to resolve a contractionary gap results in an increase in the price level
Indicate whether the statement is true or false
Full-time homemakers and retirees are classified in the BLS data as:
A. Employed B. Unemployed C. Part of the labor force D. Not in the labor force