If a firm has implicit costs as well as explicit costs
A) accounting profit will be zero.
B) net income will always be greater than accounting profit.
C) net income will always be less than accounting profit.
D) economic profit will be less than accounting profit.
D
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If the equilibrium exchange rate is 15 pesos per dollar and the central bank fixes the exchange rate at 17 pesos per dollar then we can conclude that the peso is
(a) appreciated. (b) depreciated. (c) overvalued. (d) undervalued.
The market supply curve can be derived by
A) vertically adding the individual supplies at each quantity level. B) multiplying the price and quantity supplied at each price level. C) horizontally adding the individual supplies at each price level. D) looking at the capacity utilization in the largest firms in the industry.
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending remain the same. b. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). c. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). e. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive).
Gross National Product is equal to:
(a) C+I+G+X-M. (b) C+I+X-M (+) or (-) NFY. (c) C+I+G +NX. (d) C+I+G+X-M (+) or (-) NFY.