Suppose a professor gives up her teaching job to devote her time to writing textbooks. If the salaries of professors rise, her
a. accounting profit will rise
b. accounting profit will fall
c. explicit costs will rise
d. economic profit from textbooks will fall
e. economic profit from textbooks will rise
D
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Which of the following is primarily responsible for controlling the money supply in the United States?
a. the U.S. Congress b. the Board of Governors of the Federal Reserve System c. the U.S. Treasury d. the Council of Economic Advisors
When the economy is in macro equilibrium,
a. the sum of savings plus investment must equal the sum of imports plus exports. b. the sum of savings plus imports plus taxes must equal the sum of investment plus government purchases plus exports. c. the sum of savings plus government purchases must equal exports minus imports. d. the government's budget must be in balance.
In both Gamma and Delta average labor productivity is $20,000 per worker per year. The population of Gamma is 200,000 and the population of Delta is 400,000. Sixty percent of the population in each country is employed. Total output in Gamma is ________ and total output in Delta is ________.
A. $120,000; $800,000 B. $8 billion; $4 billion C. $2.4 billion; $4.8 billion D. $4 billion; $8 billion
Which of the following statements concerning tariffs is NOT true?
A) A tariff results in a deadweight loss. B) A tariff creates revenue for the government. C) A tariff decreases international trade. D) A tariff leaves the price of imports unchanged.