Accounting profit minus implicit costs equals:
A. total revenues.
B. fixed costs.
C. explicit costs.
D. economic profit.
Answer: D
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What is the significance of the concepts "consumer surplus" and "producer surplus"?
What will be an ideal response?
Define the following terms and explain their importance in the study of macroeconomics:
a. consumer expenditures b. investment spending c. national income d. transfer payments
For a typical worker, her income will be lower when she is younger, peak around age 50, and decrease drastically when she retires. This pattern of changes in income for a typical worker is called
a. the life cycle. b. permanent income. c. transitory income. d. in-kind transfers.
If government finances fiscal policy through additional borrowing, it could affect the loanable funds market by causing
A. an increase in the quantity demanded and an increase in supply for loanable funds. B. an increase in the demand and an increase in the quantity supplied for loanable funds. C. an increase in the quantity demanded and an increase in the quantity supplied for loanable funds. D. an increase in the demand and an increase in supply for loanable funds.