In comparing accounting profit with economic profit, we generally find that
A) accounting profit is less than economic profit.
B) economic profit and accounting profit are the same in the short run.
C) accounting profit is greater than or equal to economic profit.
D) economic profit exceeds accounting profit by the amount of opportunity costs.
C
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Real income is equal to ________ and a relative price is given by ________
A) the dollar amount of income divided by the dollar price of a good; the dollar price of one good divided by the dollar price of the good whose relative price is being calculated B) the dollar price of one good divided by the dollar price of the good whose relative price is being calculated; the dollar amount of income divided by the dollar price of a good C) The dollar price of one good divided by the dollar price of another good; the dollar price of one good divided by the dollar price of the good whose relative price is being calculated D) the dollar amount of income; real income divided by the dollar amount of income
A pollution tax: a. increases the price of the good taxed
b. decreases the price of the good taxed. c. increases the production of the good taxed. d. increases the quantity of the taxed good demanded.
Governments grant patents to
A) compensate firms for research and development costs. B) encourage competition. C) encourage low prices. D) encourage firms to reveal secret production techniques.
If the world supply curve is SW0, and the country discovers a significant natural resource that can be exported, the world supply curve will shift:
A. up and the trade balance will become a surplus. B. up and the trade balance will become a deficit. C. down and the trade balance will become a surplus. D. down and the trade balance will become a deficit.