What are the differences between economic cost and accounting cost?
What will be an ideal response?
Accounting cost is explicit cost, while economic cost includes both explicit and implicit cost.
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An increase in U.S. prices relative to Japanese prices will
A) decrease both U.S. exports and imports. B) increase total planned spending on U.S. goods and services. C) increase U.S. imports and decrease U.S. exports. D) decrease U.S. imports and increase U.S. exports.
Refer to Table 2-20. Japan has a comparative advantage in the production of
A) rice. B) wristwatches. C) both products. D) neither product.
If firms in a monopolistically competitive market are earning economic profits, which of the following scenarios would best describe the change existing firms would face as the market adjusts to the long-run equilibrium?
a. an increase in demand for each firm b. a decrease in demand for each firm c. a downward shift in the marginal cost curve for each firm d. an upward shift in the marginal cost curve for each firm
In a bank reconciliation, interest revenue earned on your bank balance is
a. added to the book balance b. deducted from the book balance c. added to the bank balance