In comparing accounting profit with economic profit, we generally find that
A) accounting profit is less than economic profit.
B) economic profit and accounting profit are the same in the short run.
C) accounting profit is greater than economic profit.
D) economic profit exceeds accounting profit by the amount of opportunity costs.
Answer: C
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If government regulations significantly increase the cost of operating within a particular market, one result is that
A) new firms are discouraged from entering the market. B) barriers to entry are nullified. C) a perfectly competitive market environment is encouraged. D) new firms are encouraged to enter the market.
Which of the following statements about public goods is not true?
A. They are only produced by government agencies. B. They are non-excludable since those who do not pay for them cannot be excluded from enjoying them. C. They will be under supplied by the private sector. D. They bestow collective benefits on members of society.
The efficient markets hypothesis suggests that investors
A) should purchase no-load mutual funds which have low management fees. B) can use the advice of technical analysts to outperform the market. C) let too many unexploited profit opportunities go by if they adopt a "buy and hold" strategy. D) act on all "hot tips" they hear.
The following are all functions of money except
A) medium of exchange. B) store of value. C) unit of account. D) source of anxiety.