In the absence of high or volatile inflation, an increase in the price of oil:
A. can be confidently interpreted as meaning that oil producers are earning greater profit.
B. can be confidently interpreted as meaning that the money supply has increased.
C. can be confidently interpreted as meaning that oil has become more scarce.
D. can be confidently interpreted as meaning that the velocity of money has increased.
Ans: C. can be confidently interpreted as meaning that oil has become more scarce.
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Indicate whether the statement is true or false
A recent study found that it was cheaper to buy a chicken dinner from Kentucky Fried Chicken than it was to prepare it at home. The researcher included all costs including the imputed value of time involved to prepare the meal at home. This study illustrates the
a. value of marginal analysis. b. law of increasing costs. c. difference between real costs and money costs. d. cost disease of the service sector.
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment.Pat's accounting profit is ________, and Pat's economic profit is ________.
A. $15,000; ?$1,000 B. $34,000; $15,000 C. $50,000; $15,000 D. $34,000; ?$1,000
When a firm experiences a zero economic profit, ______.
a. neither economic nor accounting profits are positive b. economic profits and accounting profits are equivalent c. accounting profits are zero, but economic profits are positive d. economic profits are zero, but accounting profits are positive