Accounting profits are typically
A) greater than economic profits because accounting profits do not include explicit costs.
B) greater than economic profits because accounting profits do not include implicit costs.
C) smaller than economic profits because accounting profits do not include explicit costs.
D) equal to economic profits in the long run.
Answer: B
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If the aggregate supply curve is steep,
A. increased aggregate demand will not lead to higher prices. B. greater demand for labor will not cause significant wage increases. C. business firms are probably producing near capacity. D. All of these responses are correct.
What will happen to the exchange rate between the euro and the U.S. dollar if U.S. interest rates increase?
What will be an ideal response?
In the figure above, if the market is unregulated, the price will be
A) $250 per unit. B) $200 per unit. C) $150 per unit. D) $100 per unit.
Empirical research indicates that the expansion of Medicaid has led to a number of unintended consequences including
a. an increase in the incidence of low-birth weight babies among participants. b. fewer pregnant women seeking prenatal care. c. an increase in the birthrate among the eligible population. d. all of the above.