Accounting profits are found by total revenues minus
A) explicit costs.
B) explicit and implicit costs.
C) implicit costs.
D) all opportunity costs.
A
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Health clubs typically experience an increase in one-year memberships in January, but many new customers cancel their memberships before the end of the year. Which of the following is the best explanation for this behavior?
A) Some people fail to treat their membership fees as sunk costs. B) Some people are overly optimistic about their future behavior. C) Some members receive utility from activities they believe are popular. D) Some health club members suffer minor injuries that prevent them from working out.
Keynesian economists argue that the automatic adjustment of wages and prices in the macro economy is quite rapid
a. True b. False Indicate whether the statement is true or false
Refer to Figure 7-4. When the price falls from P1 to P2, which area represents the increase in consumer surplus to new buyers entering the market?
a. BDF b. BCGD c. AFG d. ABC
Which of the following causes a leftward shift in the short-run aggregate supply curve?
A. an increase of goods prices while nominal incomes are unchanged B. an increase in nominal incomes (wages and salaries) C. an increase of full-employment real GDP D. an increase of personal consumption expenditures while the price level is unchanged