Because a firm has implicit costs as well as explicit costs
A) its economic profit is usually the same as its accounting profit.
B) its accounting profit is always less than its economic profit.
C) its economic profit is usually more than its accounting profit.
D) its economic profit is usually less than its accounting profit.
Answer: D
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If policymakers set a target for unemployment that is too low because it is less than the natural rate of unemployment, this can set the stage for a higher rate of money growth and
A) cost-push inflation. B) demand-pull inflation. C) cost-pull inflation. D) demand-push inflation.
How might real business cycle theorists respond to evidence of procyclical inflation?
What will be an ideal response?
Changes in the growth rate of real GDP per capita do not reflect which of the following?
a. changes in the total production of final goods in the economy b. changes in the production of final services in the economy c. changes in the distribution of income d. changes in the size of the population
A natural monopoly is
A. A monopoly that always benefits society even when it is unregulated. B. An unregulated monopoly. C. An industry in which one firm can achieve economies of scale over the entire range of market supply. D. An industry that is dominated by a single firm.