Which of the following would explain why accounting profit might be greater than economic profit?
A) A firm has implicit costs as well as explicit costs.
B) A firm has only explicit costs.
C) A firm's net income is greater than its accounting profit.
D) A firm's net income is less than its accounting profit.
Answer: A
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When a country goes to the IMF for foreign currencies to stabilize its own currency, it enages with the IMF in a(n)
a. one-time-only grant from the IMF b. purchase-and-resale (of that currency) agreement c. agreement concerning import controls that is administered jointly by the IMF and the country d. exchange control agreement that is the prerogative of the IMF alone e. agreed upon devaluation
Suppose that a $4 per unit tax is imposed on the sellers of DVDs. The effect of the tax will be to
a. shift the supply curve up by exactly $4 and the price paid by buyers will remain unchanged. b. shift the supply curve up by exactly $4 and the price paid by buyers will rise by less than $4. c. shift the supply curve up by exactly $4 and the price received by sellers will rise by exactly $4. d. shift the demand curve down by exactly $4 and the price paid by buyers will fall by exactly $4.
Which of the following indicates the difference between the volume of exports and imports of a product?
A. Total trade B. Terms of trade C. Intra-industry trade D. Net trade
Given the annual rate of economic growth, the "rule of 70" allows one to:
A. determine the accompanying rate of inflation. B. calculate the size of the GDP gap. C. calculate the number of years required for real GDP to double. D. determine the growth rate of per capita GDP.