Economic profits are equal to
A) total revenues minus total fixed costs.
B) total revenues, after tax, minus cost of goods sold.
C) total revenues minus the implicit and explicit costs of all inputs used.
D) total revenues minus the opportunity cost of labor.
Answer: C
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Government spending conducted for the purpose of achieving full employment, price stability, or economic growth is an example of
A) fiscal policy. B) monetary policy. C) interest-rate policy. D) exchange-rate policy.
If the consumption function is C = 25 + 0.9y and income increases by $100, then consumer spending will increase by
A) $10. B) $25. C) $90. D) $115.
Even when transactions are facilitated with money, imports are paid for by exports
Indicate whether the statement is true or false
Average cost regulation of a natural monopoly: a. generates economic losses for the seller
b. necessitates a subsidy payment to the firm. c. creates incentives that tend to shift ATC curves in an upward direction. d. imposes a price that is less than marginal cost.