When a business has implicit costs
A) economic profits are greater than accounting profits.
B) economic and accounting profits are the same.
C) economic profits are less than accounting profits.
D) economic costs are the same as accounting costs.
C
You might also like to view...
Which is the more efficient use of one's tight budget: going to a first-run movie at $7.50 or waiting for the video to be available through Netflix?
A) Going to the first-run movie B) Waiting for the video C) Doing neither, especially if one's budget is tight. D) It depends on the chooser's own evaluations of costs and benefits.
Ace has always been a top student, so it was no surprise he won a $1,500 scholarship from the company where he worked summers to help with college expenses. Ace decides to spend his scholarship money on a new Apple MacBook. How will GDP be affected by Ace's recent purchases?
A. Consumption will go up by $1,500, because a computer is a durable good. B. Investment will go up by $1,500, because a computer is a durable good. C. GDP will not be affected, since Ace acquired the computer with scholarship money. D. Consumption will go up by $1,500, because a computer is a nondurable good.
Which of the following is a new law on fishing imposed by the government to increase the total supply of fish?
a. Holders of fishing rights are not allowed to resell them to others. b. Governments have issued licenses that limit catches and fishing seasons. c. Quotas have enforced higher catches in coastal areas. d. Governments around the world have reduced their offshore jurisdictions.
What are the three categories of transactions in the balance of payments? Give an example of each