Economic profit made by a firm is equal to:
a. total revenue minus the sum of implicit and explicit costs for the firm.
b. total revenue minus implicit cost for the firm
c. total revenue minus explicit cost for the firm.
d. marginal revenue minus the explicit cost for the firm.
a
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The theory of optimal currency areas argues that social welfare is ________ when countries participate in ________
A) increased; a monetary union B) decreased; a monetary union C) increased; a managed float system D) decreased; policy coordination
Interest rate parity holds well in the Eurocurrency market
Indicate whether the statement is true or false
Which of the following statements is true regarding the differences between economic and accounting costs?
A) Accounting costs include all implicit and explicit costs. B) Economic costs include implied costs only. C) Accountants consider only implicit costs when calculating costs. D) Accounting costs include only explicit costs.
If a good is inferior in an economic sense:
a. it is demand price elastic. b. it is demand price inelastic. c. the income elasticity of demand is negative. d. it is a low-quality good. e. it is not the highest quality good in its class.