Assets minus liabilities equals
A) accounting profit.
B) economic profit.
C) net worth.
D) implicit costs.
Answer: C
You might also like to view...
For the purpose of measuring the cost of living for consumers, one reason the GDP price index is NOT a good substitute for the CPI is because the GDP price index
A) compares a current year basket of goods with a base year basket of goods. B) compares current year's prices with base year's prices. C) includes the prices of exported goods, which are not consumed in the United States. D) and the CPI move in the same direction over time. E) has a larger bias than does the CPI.
What was the primary reason that Congress initiated deposit insurance in the 1930s?
A) protect the deposits of individual savers B) provide more of an incentive for depositors to monitor bank activities C) reduce systemic risk to the financial system D) reduce information problems in the banking system
The effect on the aggregate demand curve of which of the following is most similar to the effect of a decrease in the barriers to efficient functioning of financial markets?
A) a decrease in autonomous investment B) a decrease in the inflation rate C) an autonomous loosening of monetary policy D) a decrease in expected inflation E) a negative price shock
When industrial unions negotiate with an entire industry, wage gains come at the cost of
a. longer working hours b. worse working conditions c. reduced total employment d. worse products e. longer hours