Which of the following statements about the relationship between economic costs and accounting costs is true?
A. Accounting costs are always greater than economic costs.
B. Accounting costs must always equal economic costs.
C. Accounting costs are always less than or equal to economic costs.
D. Accounting costs are equal to or greater than economic costs.
Answer: C
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Which of the following will be true when the foreign exchange market is in equilibrium and exports exceed imports?
a. The nation is experiencing a trade deficit. b. There will be a net inflow of capital. c. There will be a net outflow of capital. d. The exchange rate value of the domestic currency must rise.
Suppose that the demand for artichokes (Qa) is given as: Qa = 200 - 4P. Suppose that the price of artichokes is increased slightly from $10. The total expenditure by consumers on artichokes will ________ and the number of artichokes sold will ________.
A. rise; rise B. fall; fall C.fall; rise D. rise; fall
The most common form of economic decentralization involves
A. having very little government involvement in the economy. B. markets, where people buy and sell goods and services. C. government officials making economic decisions. D. government ownership of the means of production.
Suppose that the equilibrium price of apples decreases and the equilibrium quantity of apples increases. This is best explained by:
A. an increase in the demand for apples. B. an increase in the supply of apples. C. a decrease in the demand for apples. D. a decrease in the supply of apples.