It is not true of economic profits that they
A. are a reward for bearing risks.
B. are generally greater than accounting profits.
C. are zero in a competitive market.
D. are difficult to measure.
Answer: B
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The Fed's Regulation Q
A) placed a ceiling on the interest rates U.S. banks could pay on time deposits to foreigners. B) placed a ceiling on the interest rates U.S. banks could pay on time deposits. C) placed a ceiling on the amount U.S. residents can deposits in Euro banks. D) placed a ceiling on the amount foreign residents can deposits in domestic American banks. E) placed a ceiling on the amount foreign banks can pay on time deposits.
The Coase theorem states that
A. positive externalities are directly related to the weather-the better the weather, the more positive externalities. B. in the case of trivial or zero transaction costs, negative externalities are more likely to appear. C. when transaction costs are high, positive externalities will be minimized. D. in the case of trivial or zero transaction costs, the property rights assignment does not matter to the resource-allocative outcome.
On the graph above, output is above planned expenditures at point ________
A) A B) B C) G D) H E) none of the above
Firm A owns produces both toothpaste and toothbrushes. In order to increase profits the firm must
a. Increase prices for both toothbrushes and toothpaste b. Decrease prices for both toothbrushes and toothpaste c. Increase prices on toothbrushes and increase the price on toothpaste d. Increase prices on toothbrushes but keep the price on toothpaste constant