Accounting profits are
A) total revenue minus explicit costs.
B) total revenue minus implicit costs.
C) total revenue minus explicit and implicit costs.
D) total revenue minus normal costs.
Answer: A
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Which one of these statements is always true?
a. Actual investment is equal to intended investment. b. Actual investment is equal to saving. c. Actual investment is equal to consumption. d. Intended investment is equal to saving. e. Intended investment is equal to consumption.
Assets are things of value that people own. Liabilities are debts. Therefore, a bank will always consider a checking account deposit to be an asset and a car loan to be a liability.
A. Disagree. Checking accounts represent something that the bank owes to the owner of the account. It is a bank liability B. Agree. checking accounts or something of value that is in the bank. Therefore, they are a bank asset C. Disagree. Both checking accounts and car loans represent bank liabilities
Economists define the unemployed as individuals who are:
A. not currently working. B. not currently working but are actively looking for work. C. working but looking for a different job. D. working less than their desired amount of time.
If the nominal rate of interest is 12 percent and the real rate of interest is 3 percent, then the expected rate of inflation is
A. 18%. B. 15%. C. 12%. D. 9%.