Accounting profits are found by total revenues minus
A. explicit and implicit costs.
B. implicit costs.
C. explicit costs.
D. all opportunity costs.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1.Tariffs are taxes on imported goods that make up the difference between the sale price of an item and the cost of its production. 2.On balance, consumers lose more than producers and the government gain from the imposition of a tariff. 3.One argument for tariffs is that temporarily protecting a nascent industry from foreign competition gives the young industry a chance to grow. 4.Tariffs protect jobs in the affected industry and reduce domestic unemployment overall. 5.The World Trade Organization monitors and enforces trade agreements.
Judging from the circular flow diagram, which of the following might be sold in a factor market?
a. a gourmet meal
b. the services of a medical doctor
c. automobiles
d. admission to an amusement park
The expectations hypothesis assumes:
A. a high level of uncertainty regarding the future of long-term yields. B. securities of different maturities are not perfect substitutes for each other. C. investors know the yields on bonds today and form expectations of the yields on short-term bonds in future time periods. D. the risk premium increases with longer maturities.
John is currently spending all of his income. For the last unit of Good X consumed John gets 20 utils and for the last unit of Good Y consumed he gets 10 utils. The price of Good X is $2. The price of Good Y is $5. If John wants to maximize his utility
he should A) continue to purchase the same amount of Good X and Good Y. B) increase the consumption of Good X and decrease the consumption of Good Y. C) decrease the consumption of Good X and increase the consumption of Good Y. D) decrease the consumption of Good X and decrease the consumption of Good Y.