If a firm is earning zero economic profit, then:
A. the owner will not be able to pay himself or herself a salary.
B. the firm's accounting profit is equal to the firm's implicit costs.
C. the firm will shut down in the long run, but will continue to operate in the short run.
D. the firm's revenues are sufficient to pay its explicit costs, but not its implicit costs.
Answer: B
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The Keynesian theory of money demand emphasizes the importance of
A) a constant velocity. B) irrational behavior on the part of some economic agents. C) interest rates on the demand for money. D) expectations.
The Doing Business reports provide information on ________
A) the size of a country's national debt B) the rate of inflation C) the independence of individual central banks D) how easy it is to conduct business in different parts of the world
A disadvantage of unit excise taxes is they create the incentive _____
a. for producers to favor smaller products over larger products b. for producers to favor expensive products over inexpensive products c. for buyers to purchase more of the good then they otherwise would d. for buyers to shift to substitute goods with ad valorem excise taxes
How much would the interest rate be if there was no usury law?
