Accounting profit equals
a. explicit costs minus implicit costs
b. economic profit minus implicit costs
c. economic profit minus explicit costs
d. economic profit minus explicit costs and implicit costs
e. economic profit plus implicit costs
E
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"Natural" real GDP is defined as the total output
A) at business cycle peaks. B) at business cycle troughs. C) that causes an inflation rate of zero. D) that causes the inflation rate to remain constant. E) produced when all of our resources are being used to their maximum capacity.
When the central bank increases the monetary base, the purchasing power of previously existing currency ________, and this essentially transfers wealth ________
A) increases; from those who own existing currency to the government B) decreases; from those who own existing currency to the government C) increases; from the government to those who own existing currency D) decreases; from the government to those who own existing currency
In the real world, the actual multiplier is ____ the simplified multiplier
a. much larger than b. slightly larger than c. equal to d. slightly smaller than e. much smaller than
Suppose an economy produces only three products, A, B, and C. Quantity purchased and changes in the prices of these items over a period are shown below:??Average Price Per UnitProductQuantityYear 1Year 2A10$10$8B152022C85055Using year 1 as a base, the value of the country's nominal GDP in year 2 is:
A. the same as nominal GDP in year 1. B. $850, assuming no change in quantity from year 1 to year 2. C. $800 assuming no change in quantity from year 1 to year 2. D. $3,270 assuming no change in quantity from year 1 to year 2.