Which of the following definitions is correct?
A. Accounting profit + economic profit = normal profit.
B. Economic profit - accounting profit = explicit costs.
C. Economic profit = accounting profit + implicit costs.
D. Economic profit - implicit costs = accounting profits.
Answer: C
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Which of the following is the LEAST scarce?
A) college education B) medicine C) housing D) air
The principle that people would rather leave things as they are is called _____
a. status quo b. stand still c. stagnation d. pause e. quo warranto
The optimal mix of output is always the same as the
A. Most desired combination on a production possibilities curve. B. Output that producers produce. C. Output that consumers demand. D. Output that the government provides.
Debt is measured relative to GDP because:
A. as long as this ratio remains high, the government will have no trouble repaying the debt. B. GDP is always used as a reference point in economics. C. the ability of a country to pay off its debt depends on its productive capacity. D. the ability to produce output depends on the size of the nation's debt.