All else constant, as the amount of a firm's implicit costs increases, the difference between economic profit and accounting profit will:
A) increase.
B) stay the same.
C) decrease.
D) cannot be determined without more information.
A
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
The theory that our population would grow too quickly relative to our food supply is associated with
A. Adam Smith. B. Karl Marx. C. Thomas Malthus. D. John Maynard Keynes.
Market price is determined by
A. both supply and demand B. supply only C. demand only D. neither supply nor demand
If the government imposed a green tax on gasoline, ceteris paribus, the price of gasoline should
A. Remain unchanged. B. Decrease. C. Increase. D. Increase initially but later decrease.