Accounting profits are typically:
A. greater than economic profits because the former do not take explicit costs into account.
B. equal to economic profits because accounting costs include all opportunity costs.
C. smaller than economic profits because the former do not take implicit costs into account.
D. greater than economic profits because the former do not take implicit costs into account.
Answer: D
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If the price of chocolate chip cookies falls, then
A) the supply curve of chocolate chip cookies shifts rightward. B) the supply curve of chocolate chip cookies shifts leftward. C) there is a movement downward along the supply curve of chocolate chip cookies. D) there is a movement upward along the supply curve of chocolate chip cookies.
Answer the following statement(s) true (T) or false (F)
1.The tax cuts made by Presidents Johnson and Reagan both led to a decline in economic growth. 2.Over time, any permanent change in government purchases must be fully offset by a change in private expenditure. 3.The time span before enough data are gathered to indicate the actual presence of a downturn is known as the recognition lag. 4.Unemployment insurance is the most important automatic stabilizer. 5.Changes in government transfer payments or tax collections that automatically tend to counter business cycle fluctuations are known as discretionary policies.
A society with a large unskilled labor force will most likely practice
a. machine-intensive farming methods b. labor-intensive farming methods c. machine and labor-intensive farming methods d. importing food to avoid famine
Comparative advantage refers to a country's:
A. Ability to produce a specific good with fewer resources than another country. B. Monopoly power in the world market for a specific good. C. Ability to sell a specific good for a higher price than another country. D. Ability to produce a specific good at a lower opportunity cost than another country.