Accounting profit differs from economic profit because:
a. of differences in the manner in which revenue is calculated.
b. economic costs include depreciation, while accounting costs do not.
c. accounting costs are generally higher than economic costs because accounting costs include explicit and implicit costs, while economic costs include only explicit costs.
d. economic costs are generally higher than accounting costs because economic costs include all opportunity costs, while accounting costs include explicit costs only.
d. economic costs are generally higher than accounting costs because economic costs include all opportunity costs, while accounting costs include explicit costs only.
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The financial capital of a firm includes the: a. service provided by its accountants
b. credit cards provided to its top executives. c. equity and bonds issued by it. d. loans accepted from banks. e. computers purchased for its office staff.
Persistent wage differentials in the U.S. can best be explained by
a. increased immigration of both skilled and unskilled workers b. increased labor-force mobility among the states c. the existence of noncompeting labor markets d. the existence of backward-bending labor supply curves e. the increasing competitiveness of firms in labor markets
The law of increasing opportunity cost results from the varying ability of resources to adapt to the production of different goods and it helps to explain why production possibilities curves are typically bowed outward
Indicate whether the statement is true or false
If the growth rate of real GDP rises from 3% to 4% per year, then the number of years required to double real GDP will decrease from
A) 23.3 years to 17.5 years. B) 28.0 years to 21.0 years. C) 11.2 years to 10.8 years. D) 23.3 years to 20.6 years.