A key difference between accountants and economists is their different treatment of the cost of capital. Does this cause an accountant's estimate of total costs to be higher or lower than an economist's estimate? Explain
An accountant would not include the forgone interest income that the money could have earned elsewhere if it had not been invested in the business. Therefore, an accountant's estimate of total cost will be less than an economist's.
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The graph shows the market for cell phones. The government imposes a sales tax on cell phones at $10 a cell phone. The excess burden of the sales tax on cell phones is
A) $20,000. B) $15,000. C) $35,000. D) $7,500. E) $30,000.
Which of the following is NOT an element of a seller's decision-making process in a perfectly competitive market?
A) The relationship between the inputs and outputs B) The cost of the inputs C) The price of the output D) The number of buyers
The above table shows Homer's marginal utility from consuming various quantities of chocolate chip cookies and cake. The price of cookies is $1 per pound, the price of cake is $2 per slice and Homer has $9 to spend on cookies and cake
Homer will consume ________ pounds of cookies and ________ slices of cake. A) 5; 2 B) 2; 5 C) 3; 3 D) None of the above answers is correct.
During the record deficits of the 1980s, the off-budget elements were
A. fluctuating annually between surpluses and deficits. B. in deficit, but only barely. C. also in record deficit territory. D. in surplus.