Accounting profit is equal to:
A. total revenue minus explicit costs.
B. total revenue minus explicit and implicit costs.
C. economic profit minus implicit costs.
D. total revenue minus implicit costs.
Answer: A
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Define allocative efficiency. Explain the significance of this concept in economics?
What will be an ideal response?
Refer to the graphs shown, which show indifference curve analysis with the associated demand curves.
The best explanation for a movement from point D to point E is:
A. an inward rotation of the budget constraint along the x-axis, forcing the consumer to move from point B to point A. B. an outward rotation of the budget constraint along the x-axis, allowing the consumer to move from point A to point B. C. an inward rotation of the budget constraint along the y-axis, forcing the consumer to move from point C to point B. D. a parallel shift of the budget constraint, allowing the consumer to move from point A to point C.
Father says, "Earn an A on your next report card and I'll help you buy a car." An economist would say that this parent is providing his child a(n)
A. study disincentive. B. bribe. C. reason to slack off and not worry about her grades. D. incentive.
If the average tax rate is less than the marginal tax rate, the tax would be
A. proportional. B. progressive. C. regressive. D. uniform.