What is the difference between accounting profit and economic profit?
a. They are the same thing.
b. They are only different if the accountant makes a mistake.
c. Accounting profit is usually smaller than economic profits.
d. Accounting profit makes no allowance for several implicit costs, including equity capital, while economic profit takes these costs into account.
D
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Net exports equal:
A. exports plus imports. B. exports minus depreciation. C. the value added of exports. D. exports minus imports.
Write down the budget constraint equation as well as the choice set for a worker who has 100 possible hours of leisure per week and can earn a wage of $25 per hour.
What will be an ideal response?
Consider the perfectly competitive firm in the above figure. At what price will long-run equilibrium occur?
A) $11 B) $12 C) $22 D) $23
An example of an employer tax credit is the EITC
Indicate whether the statement is true or false