Answer the following questions true (T) or false (F)
1. Explicit costs are nonmonetary costs.
2. An increase in liabilities will reduce a firm's net worth.
3. A firm's net income is also its accounting profit.
1. FALSE
2. TRUE
3. TRUE
You might also like to view...
When Alex eats 1 slice of pizza, his total utility is 80; when Alex eats 2 slices of pizza, his total utility is 120. Alex's marginal utility from the second pizza is
A) 200. B) 80. C) 60. D) 40.
To increase employment, the most effective type of government budget would be a
a. surplus budget. b. balanced budget. c. deficit budget. d. falling budget.
Which of the following describes Ralph?
Ralph loves to watch public television but never sends any money to support the local station. a. He is a free rider getting benefits without paying any costs. b. He has a positive externality from television watching. c. He has a negative externality from television watching. d. He is a free rider paying costs without receiving any benefits.
The profitability of an investment project will decrease if
a. tax rates decrease. b. real interest rates increase. c. real interest rates decrease. d. business tax deductions increase.