Lanny is attempting to determine his firm’s economic profits for the previous year. He already knows what its accounting profits were. To calculate its economic profits, Lanny also needs to know the firm’s ______ for the previous year.
a. economic income
b. implicit costs
c. marginal benefits
d. explicit losses
b. implicit costs
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According to this Application, Yu Juo proposed that the Chinese government should ________ the tax rate in the case of a famine if the government had insufficient funds, and this would ________ the standard of living
A) increase; increase B) increase; decrease C) cut; decrease D) cut; increase
Other things constant, when household "time preferences" ________, business investment tends to ________
A) fall; fall B) fall; rise C) rise; fall D) rise; rise
Tariff revenue is an important source of operating revenue for many governments of high income countries
Indicate whether the statement is true or false
Conflicts of interest may arise within the credit rating agencies because
A) the investors pay the credit agencies for ratings. B) the issuers of debt securities pay the credit agencies for ratings. C) the credit rating agencies provide auditing services to issuers of debt securities. D) the credit rating agencies are involved in offering credit counseling to investors.