Economic profit is equal to total revenue minus the
a. explicit cost of producing goods and services.
b. opportunity cost of producing goods and services.
c. accounting cost of producing goods and services.
d. implicit cost of producing goods and services.
b
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The ratio of money created by the lending activities of the banking system to the money created by the government's central bank is called the:
A. money multiplier. B. reserve ratio. C. federal funds. D. demand deposits.
If a country has a lower opportunity cost than its potential trading partner, the country should decide to be self-sufficient
a. True b. False Indicate whether the statement is true or false
All other things unchanged, the velocity of money will
A) increase if the quantity of money demanded decreases. B) increase if the quantity of money demanded increases. C) decrease if the quantity of money demanded decreases. D) fall to zero if the quantity of money demanded increases.
According to the Ricardo-Barro effect, an increase in the government budget deficit
A) lowers the real interest rate. B) has no effect on the nominal interest rate but does change the real interest rate. C) shifts the demand for loanable funds curve leftward. D) shifts the supply of loanable funds curve leftward. E) does not change the real interest rate.