?If a shoe store earns more than a normal profit, its:
a. ?accounting profit is zero.
b. ?accounting profit is less than its economic profit.
c. ?economic profit is positive.
d. ?economic profit must be greater than its accounting profit.
e. ?economic profit is, therefore, equal to its accounting profit.
Answer: c. ?economic profit is positive.
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Nonfinancial businesses in Germany, Japan, and Canada raise most of their funds
A) by issuing stock. B) by issuing bonds. C) from nonbank loans. D) from bank loans.
In the quantity equation framework for understanding the determinants of long-run inflation, a rise in government spending ________ velocity, putting ________ pressure on inflation
A) raises, upward B) raises, downward C) lowers, upward D) lowers, downward
When the Lorenz curve moves closer to the diagonal, this shows:
a. the rich getting richer and the poor getting poorer. b. total income is rising. c. the distribution of income is becoming more even. d. the population is decreasing. e. the prices of goods are rising.
M2 includes:
a. Currency in circulation + Reserves of financial intermediaries (e.g., banks) + Checking Accounts + Near Money. b. Currency in circulation + Checking Accounts c. Currency in circulation + Cash inside financial intermediaries + Deposits at the central bank + Checking Accounts + Near Money. d. Currency in circulation + Checking Accounts + Near Money. e. Monetary base plus currency in circulation.