Accounting profit is typically
A. greater than economic profit because the former does not take explicit costs into account.
B. smaller than economic profit because the former does not take implicit costs into account.
C. equal to economic profit because explicit costs include all opportunity costs.
D. greater than economic profit because the former does not take implicit costs into account.
Answer: D
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Which of the following is true?
a. In 2002, national defense accounted for more than half of federal spending. b. Federal spending on national defense has increase rapidly during the last several decades. c. Federal spending on health care programs such as Medicare and Medicaid has increased rapidly during the last several decades. d. Federal spending in the aftermath of hurricane Katrina expanded over 50%.
Some take issue with the human capital argument that employers pay more for college graduates because firms recognize the value of human capital. What are two alternative explanations for why college grads receive higher pay?
What will be an ideal response?
Which writer held the view that by showering so much money on the poor, the government robbed them of their incentive to work?
A. Barbara Ehrenreich B. Frances Fox Piven C. Charley Murray D. William Julius Wilson
Large income differences will be eradicated if the market mechanism is working well.
Answer the following statement true (T) or false (F)