A normal rate of return on investment is equal to
A) accounting profit minus economic profit.
B) the opportunity cost of capital plus any other implicit costs.
C) accounting profit plus economic profit.
D) total revenue plus total accounting profit
Answer: B
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When individuals form an alliance to ensure that all members will volunteer in case of a volunteer's dilemma, this is called
A) compulsory volunteerism. B) coalition building. C) bargaining. D) eminent domain.
Bob inherits a large sum of money from his dead uncle's estate. Bob decides to retire young, so he quits his job and heads to the Bahamas. Bob is an example of
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) None of the above is correct.
A pollution tax has the effect of reducing the costs of production for a firm, leading to a rightward shift of the supply curve
a. True b. False Indicate whether the statement is true or false
What are the major factors that determine investment, and what impact does each have on aggregate demand?