The passive approach to resolve a contractionary gap results in a decrease in the price level, and the active approach to resolve a contractionary gap results in an increase in the price level
Indicate whether the statement is true or false
true
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Tanesha sells homemade candles over the Internet. Her annual revenue is $64,000 per year, the explicit costs of her business are $17,000, and the opportunity costs of her business are $22,000. What is her accounting profit?
A) $17,000 B) $22,000 C) $47,000 D) $64,000
In a natural monopoly, a firm has ______ over the relevant range of output with declining average total costs.
a. pure competition b. economies of scale c. illegal barriers d. twenty-year patents
Which statement is true about advertising?
A. If you are a tomato grower you will make more profit by advertising widely. B. Advertising is most useful if it is spent on new products of good quality. C. It is best to spend advertising money on the products with the lowest quality and lowest consumer demand. D. If John Kenneth Galbraith's "revised sequence" is correct, advertising is a waste of money.
Normal rate of return is
A) accounting profit. B) an explicit cost. C) economic profit. D) the amount that must be paid to obtain investment in a business.