Economic profit is:
a. always less than zero.
b. never less than accounting profit.
c. less than accounting profit if implicit costs are zero.
d. less than accounting profit if implicit costs are greater than zero.
d
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Andrew has the utility of wealth curve shown in the above figure. He owns an SUV worth $30,000, and that is his only wealth. There is a 10 percent chance that he will have an accident within a year. If he does have an accident, his SUV is worthless
What is Andrew's expected wealth? A) $30,000 B) $27,000 C) $20,000 D) zero
Economists generally agree that in the long run changes in aggregate demand affect
A) aggregate output but not the price level. B) the price level but not aggregate output. C) both the price level and aggregate output. D) neither the price level nor aggregate output.
The 2009 fiscal stimulus package did not work ________
A) in that the IS curve did not shift to the right B) because most of the intended increase in government spending took too long to kick in C) because the increase in government spending was not enough to offset the decline in autonomous expenditure D) all of the above E) none of the above
Because most insurance companies insure many people, they do not have to worry about the problem of:
A. spreading of risk. B. information asymmetry. C. moral hazard. D. adverse selection.