The difference between a firm's total revenues and total costs when all explicit and implicit costs are included is the firm's
a. economic profit.
b. accounting profit.
c. opportunity cost of capital.
d. long-run average total cost.
A
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Refer to Figure 11-2. Assuming no technological change, if the United States increases capital per hour worked by $40,000 every year between 2012 and 2016, we would expect to see
A) the per-worker production function will shift up every year there is increase in capital per hour worked. B) the per-worker production function will get flatter over time. C) real GDP per hour worked will increase by the same increment each year between 2012 and 2016. D) real GDP per hour worked will be lower in 2016 than it was in 2012.
Borrowers benefit and lenders lose when the
A) actual interest rate is less than the expected real interest rate. B) actual interest rate is greater than the expected real interest rate. C) actual interest rate is equal to the expected real interest rate. D) actual inflation rate is less than the expected inflation rate.
The aggregate supply schedule is steeper where the money wage is more variable than where the money wage is fixed because the rise in the money wage in the
a. fixed-wage case dampens the effect on employment and output from an increase in the price level. b. variable-wage case dampens the effect on employment and output from an increase in the price level. c. variable-wage case heightens the effect on employment and output from an increase in the price level. d. all of the above
Assume that the opportunity cost for Germany to produce a jet is 50 cars. If Germany is producing on its production Possibility Frontier, some possible combinations of output for Germany could be:
A. (1,000 jets, 5,000 cars) and (900 jets, 10,000 cars). B. (1,000 jets, 5,000 cars) and (900 jets, 15,000 cars). C. (2,500 jets, 2,000 cars) and (2,300 jets, 20,000 cars). D. (2,500 jets, 2,000 cars) and (2,300 jets, 3,000 cars).