Accounting profit can be calculated as
A. total revenue - explicit costs.
B. total revenue - explicit costs - implicit costs.
C. total revenue - implicit costs.
D. total revenue - opportunity costs.
Answer: A
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When policy makers choose between tax policy and spending policy to affect the level of aggregate demand, they tend to choose on the basis of
A. how large a public sector they want. B. how much they want to change aggregate demand. C. how much they want to change aggregate supply. D. which has the larger multiplier.
The mistiming problem with discretionary fiscal policy results from
A. a delay in agreeing on a solution to a recession. B. a delay in recognizing a recession. C. a delay in getting a particular plan implemented with the money getting into peoples' hands. D. all of the options are correct.
Structural unemployment includes people who become unemployed from
A) changes in the business cycle. B) technological changes. C) going back to school. D) changes in the seasons. E) normal changes in the labor force.
Free goods are usually efficiently allocated without government intervention
a. True b. False Indicate whether the statement is true or false