A normal rate of return on investment is equal to
A. accounting profit plus economic profit.
B. total revenue plus total accounting profit
C. accounting profit minus economic profit.
D. the opportunity cost of capital plus any other implicit costs.
Answer: D
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After the September 11th attack on the World Trade Center, and with the emergence of the anthrax scare, the price and the purchases of gas masks jumped dramatically in New York City. In the economic way of thinking, which of the following occurred?
A) The supply curve for gas masks shifted to the right. B) The supply curve for gas masks shifted to the left. C) The demand curve for gas masks shifted to the right. D) The demand curve for gas masks shifted to the left. E) The demand curve for gas masks became upward-sloping.
Consider a country that produces only two goods: pineapples and tractors. Suppose it is possible for this country to increase its production of pineapples without producing fewer tractors. In this case, its current output combination is inefficient
Indicate whether the statement is true or false
If a society chooses fiat money as its money form, it
a. must guarantee its convertibility into gold b. must worry about its liquidity c. cannot make use of a banking system d. must worry about controlling its quantity e. must worry about controlling its demand
Suppose the supply of Malaysian rubber increases. If U.S. producers purchase this rubber as an input, in the United States, this would cause a
A) rightward shift of the AD curve. B) leftward shift of the AD curve. C) rightward shift of the SRAS curve. D) leftward shift of the SRAS curve.