Which of the following is most likely to be true of economic and accounting profits?
a. Economic profits are less than accounting profits.
b. Accounting profits are less than economic profits.
c. Economic profits plus accounting profits equal zero.
d. Accounting profits minus economic profits equal zero.
a
You might also like to view...
Labor demand is considered a derived demand because producers do not demand labor for itself but only because labor is used to produce output that consumers desire
Indicate whether the statement is true or false
A corporate bond sold in 2000 with a face value of $10,000 . a $100 coupon, and a maturity date in 2010
a. will pay the bondholder $100 a year every year from 2000 to 2010 and will also pay him $9,000 in 2010. b. will pay the bondholder $100 a year every year from 2000 to 2010 and will also pay him $10,000 in 2010. c. requires the bondholder to pay $100 a year every year from 2000 to 2010 and will pay him $10,000 in 2010. d. requires the bondholder to pay $100 in 2000 only and will pay him $10,000 in 2010.
Financial intermediaries that are collected pools of funds from many investors are called: a. mutual funds. b. banks
c. credit unions. d. stockbrokers.
Suppose a nation reduced taxes by $20 billion. The direct change in the monetary base would be:
a. Equal to +$20 billion because the government pumps new money into the economy when it lowers taxes. b. Greater than +$20 billion because the M2 money multiplier would inflate the $20 billion of new monetary base. c. Equal to $0. d. Equal to $20 billion times the reserve ratio on checking accounts. e. Less than $20 billion because some of the newly created funds would leak into the system in the form of currency in circulation.