Accounting profits are total revenues minus
A) all relevant opportunity costs.
B) explicit and implicit costs.
C) explicit costs and all other relevant opportunity costs.
D) explicit costs.
Answer: D
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With a change in the money supply, a vertical LM curve shifts a horizontal distance equal to
A) that change. B) that change times velocity. C) that change divided by velocity. D) that change times the simple Keynesian multiplier.
The production function for good X in the table below exhibits increasing marginal returns to capital over what output range? Production Function for Good XL*KQMPK=(?Q/?K)APK=(Q/K)LaborCapitalOutputMarginal Product of CapitalAverage Product of Capital900----910575.75.7092032426.716.2093065733.3B9401,07241.526.809501,52445.230.489601,97645.232.939702,39141.534.169802,72433.334.059902,991A33.2391003,0485.730.4891103,016-3.227.4291202,945-7.124.54
A. Between 3,016 and 2,945 B. Between 0 and 1,524 C. Between 2,391 and 3,048 D. Between 0 and 2,991
Fixed costs are
A) costs that never change. B) costs that a firm incurs even when output is zero. C) not actually costs since they do not affect the decisions of a firm. D) costs that increase at a constant rate when output increases.
Growth accounting refers to the method used to
A) identify the contribution of economic growth from increased capital, labor, and technological progress. B) measure growth in the capital stock. C) measure the growth in the labor force. D) identify the costs of promises made by the government today but paid for by future generations.