Why don’t economists use the same cost data as accountants use?
Please provide the best answer for the statement.
Implicit costs are as important as the explicit costs which are generally the so-called “accounting costs.” For example, economists (but not accountants) would count the income forgone in the use of the owner’s time as an economic cost, the interest forgone by using one’s own funds, and so on for the use of other resources. These implicit costs should be counted so one can judge the true economic or opportunity cost of production. If these costs are neglected, then an over allocation of resources could occur because not all of the production costs are being measured.
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Which of the following is NOT a part of the income approach to determining GDP?
A) rental income B) gross private domestic investment C) net interest D) indirect business taxes
Value-creating contracts require underlying laws that:
a. clearly define the rights and obligations of the parties. b. discriminate between the rights of the different income groups. c. describe the final distribution of rights among the transacting parties. d. create equal distribution of wealth.
xplain how technology can shift the supply curve to the right.
What will be an ideal response?
If the Gross Domestic Product (GDP) in the United States increases, which of the following will probably result?
a. Employment levels will increase. b. Employment levels will remain flat. c. Unemployment rates will increase. d. Wages will increase.