Which of the following is the formula used for computing an accounting profit?
A) accounting profits = total revenue - implicit costs
B) accounting profits = total revenue - (implicit + explicit costs)
C) accounting profits = total costs - total revenue
D) accounting profits = total revenue - explicit costs
D
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Which factor of production does human capital enhance?
i. land ii. labor iii. capital A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
The higher the price of the good measured on the vertical axis, other thing remaining the same, the flatter the budget line
Indicate whether the statement is true or false
A decrease in interest rates
A) increases the value of the dollar, net exports, and equilibrium output. B) increases the value of the dollar, reducing net exports and equilibrium output. C) reduces the value of the dollar, net exports, and equilibrium output. D) reduces the value of the dollar, increasing net exports and equilibrium output.
The real rate of interest is
A. found by taking the nominal rate of interest and adding the actual rate of inflation. B. equal to the nominal rate of interest plus the anticipated rate of inflation. C. found by taking the nominal rate of interest and dividing it by the actual rate of inflation. D. equal to the nominal rate of interest less the anticipated rate of inflation.