Since all costs are positive, then economic profit would always be smaller than accounting profit.
Answer the following statement true (T) or false (F)
True
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A 5% increase in real income usually leads to ________ in money demand
A) a decrease B) no change C) an increase of less than 5% D) a decrease of 5%
In Japan, interest rates are close to zero. As a result, Keynesians would argue that money demand
a. has become much more interest rate elastic. b. will shift upward. c. has become much less interest rate elastic. d. will shift downward. e. will remain unchanged.
After the terrorist attacks on September 11, 2001, governments within the United States raised expenditures to increase security at airports. These purchases of goods and services are
a. not included in GDP since they do not represent production. b. not included in GDP since the government collects taxes to pay for them. c. included in GDP since government expenditures on goods and services are included in GDP. d. included in GDP only to the extent that the federal government, rather than state or local governments, paid for them.
At what point is the percent of price reduction the same as the percent of quantity increase?
a. ED >1
b. ED = 1
c. ED < 1
d. ED x 1