Economic profit equals
A) accounting profit plus the cost of capital.
B) accounting profit minus the cost of capital.
C) accounting profit minus interest payments.
D) accounting profit plus interest payments.
B
You might also like to view...
Jane is a top-level executive and is very rich. Jane just ordered a car only to be told that she will have to wait three weeks for it to be delivered. Which of the following statements is true?
A) The car is not a scarce good. B) The car is a scarce good. C) Because Jane has unlimited funds, she incurs no opportunity cost in buying the car. D) Jane paid too much for a car that wasn't ready on time
During a hyperinflation the real domestic value of a country's currency
a. falls and its nominal exchange rate depreciates. b. falls and its nominal exchange rate appreciates. c. rises and its nominal exchange rate depreciates. d. rises and its nominal exchange rate appreciates.
The consumer price index is created by
A. calculating the cost of a "basket" of consumer goods typically bought by an American family in any year as a percentage of their cost in a base year. B. the Congressional Budget Office. C. averaging the price increases for all consumer goods in the GDP and adding 100. D. dividing nominal dollar consumer expenditures by base year consumer expenditures.
If people expect an inflation rate of 3.3 percent, and the real interest rate is 3 percent, the nominal interest rate equals (approximately)
A) 0.3 percent. B) 8.6 percent. C) 6.3 percent. D) 9.9 percent.