Accounting profits are calculated as:
A. total revenue minus implicit costs.
B. total revenue minus explicit costs.
C. total revenue minus all opportunity costs, explicit and implicit.
D. None of these is true.
Answer: B
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What factors are most important for determining exchange rate fluctuations in the long run?
A) preferences for domestic and foreign goods across countries B) relative rates of productivity growth across countries C) relative price levels across countries D) All of the above are correct.
In a democratic society, the preferences of __________ will often dominate decisions made by direct majority voting
a. elected government representatives b. special interest groups c. rent seekers d. senior citizens e. the median voter
In Econland exports equal 15 percent of total output, while imports equal 20 percent of total output. Econland has a:
A. trade surplus. B. trade deficit. C. budget surplus. D. budget deficit.
Which of the following options could be used to eliminate a recessionary gap?
A. Increase government spending. B. Decrease government spending. C. Decrease investment. D. Increase taxes.