Accounting profit made by a firm is equal to:
a. total revenue minus total cost of the firm
b. total revenue minus implicit cost for the firm.
c. total revenue minus explicit cost for the firm.
d. marginal revenue minus explicit cost for the firm.
c
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The absence of barriers to entry in monopolistic competition means that in the long run, firms
A) earn an economic profit. B) earn zero economic profit. C) incur an economic loss. D) earn either an economic profit or zero economic profit. E) earn either zero economic profit or suffer an economic profit.
As a business type, corporations ________ in the United States
A) are subject to the least amount of taxes B) earn the majority of profits C) are the least common D) are the most common
Which of the following is the best statement about how the amount of the net public debt that a typical individual owes to the holders of the debt has varied in the recent past?
A. The amount has steadily decreased over time. B. The amount has varied a lot over time. C. The amount has not varied at all. D. The amount has steadily increased over time.
The higher the marginal propensity to consume
A. the smaller the spending effect will be. B. the bigger the incentive effect will be. C. the smaller the incentive effect will be. D. the bigger the multiplier effect will be.