Suppose your accountant told you that the economic profit you made last year was $50,000 . You would be pleased because the $50,000 represents your total revenue minus
a. implicit costs
b. monetary costs
c. explicit costs
d. both implicit costs and explicit costs
e. the difference between explicit and implicit costs
D
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Other things being equal, an increase in the price of a good leads to a decrease in the amount people purchase. This is known as
A) the law of demand. B) the law of supply. C) ceteris paribus. D) equilibrium.
In the above figure, a surplus exists in the gasoline market when the price is
A) $1/gallon. B) $2/gallon. C) $4/gallon. D) below $2/gallon.
Under the Bretton Woods system, a country with a balance of payments deficit
a. could get loans from the U.S. government. b. could devalue if deflationary policies failed to eliminate the deficit. c. was not allowed to devalue under any circumstance. d. was required to devalue its currency immediately.
Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.Equilibrium in this market occurs at the intersection of curves S and D.
Figure 4.6Refer to Figure 4.6. If price goes from equilibrium to P1, consumer surplus changes by the area
A. E + F. B. B - F. C. E - C. D. C + E.