How does the economist's measure of profit differ from the accountant's measure?
A) Economists subtract total revenue from total cost; accountants do the opposite.
B) Economists subtract total costs from total revenue; accountants do the opposite.
C) Economists consider more sources of monetary revenue than accountants do.
D) Economists include all opportunity costs, accountants don't.
E) There is no difference between the two measures.
D
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Until Federal Reserve Notes are actually used by the District Federal Reserve Banks, the notes are
a. considered counterfeit b. not counted as part of the money supply c. considered specie currency d. devalued during open market operations e. held in a detention bank in San Francisco
Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. Suppose consumers' income is $50,000 and the price of satellite TV service is $90. At what price would the demand for cable TV services be equal to 55,000 households?
A. $67 B. $48 C. $12 D. There is not enough information to answer the question.
Supply-siders' policy recommendations include:
A. lower tax rates, spending cuts, and increased government regulation. B. lower tax rates, lower resource prices, and decreased government regulation. C. lower tax rates, spending increases, and decreased government regulation. D. higher tax rates, spending increases, and increased government regulation.
If the government has no debt initially, but then has annual revenues of $20 billion per year for 4 years and annual expenditures of $20.5 billion per year for 4 years, then the government has
A. a budget surplus of $0.5 billion per year and a debt of $2 billion at the end of the 4 years. B. a budget deficit of $0.5 billion per year and a debt of $2 billion at the end of the 4 years. C. a budget surplus of $0.5 billion per year and a surplus of $2 billion at the end of the 4 years. D. a budget deficit of $0.5 billion per year and a budget surplus of $2 billion at the end of the 4 years.