Which of the following is the formula used for computing economic profits?

A) economic profits = total revenue - implicit costs
B) economic profits = total revenue - (implicit costs + explicit costs)
C) economic profits = total costs - total revenue
D) economic profits = total revenue - explicit costs


B

Economics

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According to Marx, which of the following factors of production did not contribute anything of value to production?

A) capital B) entrepreneurship C) natural resources D) labor

Economics

If the First National Bank has a gap equal to a negative $30 million, then a 5 percentage point increase in interest rates will cause profits to

A) increase by $15 million. B) increase by $1.5 million. C) decline by $15 million. D) decline by $1.5 million.

Economics

The classic example used to discuss the problem of adverse selection is:

A. fruit and produce markets, such as lemons. B. drivers with insurance who tend to drive more recklessly. C. the imbalance of information that exists between a buyer and seller of a used car. D. workers who shirk when their effort isn't closely monitored.

Economics

At the current price there is a shortage of a product. We would expect price to:

A. increase, quantity demanded to increase, and quantity supplied to decrease. B. decrease, quantity demanded to increase, and quantity supplied to decrease. C. increase, quantity demanded to decrease, and quantity supplied to increase. D. increase, quantity demanded to increase, and quantity supplied to increase.

Economics