The difference between a firm's total revenues and total costs when all explicit and implicit costs are included is the firm's:
A. economic profit.
B. accounting profit.
C. opportunity cost of capital.
D. long-run average total cost.
Answer: A
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
The CPI in 1930 equaled 0.17. The CPI in 1931 equaled 0.15. The rate of inflation between 1930 and 1931 was ________ percent.
A. 11.8 B. -13.3 C. -11.8 D. 1.5
Analysts have suggested that the cost of bras is related to trade restrictions on textile imports. What does the price of bras have to do with tariffs and quotas?
A. Trade restrictions in the form of tariffs keep prices of bras high, but replacing them with quotas will result in lower prices. B. Trade restrictions do not influence the price of bras; the price is determined by domestic technology and the overall inflation rate. C. Trade restrictions keep the prices of bras high, and ending them will result in lower prices. D. Trade restrictions protect consumers by keeping the price of bras low.
If real GDP falls, then so must nominal GDP.
Answer the following statement true (T) or false (F)