Economic profit is:
A. implicit and explicit revenues minus implicit costs.
B. total revenue minus explicit measurable costs.
C. implicit and explicit revenues minus implicit and explicit costs.
D. explicit revenues minus explicit costs.
Answer: C
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Assuming the Federal Reserve is targeting the interest rate, a decrease in money demand will
a. shift the LM schedule to the right. b. shift the LM schedule to the left. c. shift the IS schedule to the right. d. not shift the LM schedule. e. none of the above.
Ted got a ticket to this year’s Super Bowl and paid the face value of $1,000. His cousin offered him $3,000 for the ticket. Ted chose to attend the game. From this, we can infer that Ted’s value for this ticket was
A. less than $1,000. B. more than $2,000. C. at least $3,000. D. the ticket price plus his cousin’s offer, a total of $4,000.
In the figure above, between points A and B, what is the slope of the line?
A) 4 B) 1 C) 3 D) -3 E) 0
In the short run, a tax on economic profits can be shifted.
A. True B. False C. Uncertain