Which of the following statements is true?
A. Accounting profit is always positive.
B. Economic profit is always positive.
C. Accounting profit is greater than or equal to economic profit.
D. Economic profit is greater than or equal to accounting profit.
Answer: C
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In June 1960, the price of gasoline in the Midwest was $0.169 per gallon and the CPI was 29.6 with a base period of 1982 to 1984. What was the real price of gasoline per gallon in base period dollars?
A) $0.05 per gallon B) $0.057 per gallon C) $0.169 per gallon D) $0.571 per gallon E) $0.296 per gallon
If the MPC is 0.80, then a change in disposable income of $60 billion will lead to an initial change in consumption of
A. $30 billion. B. $42 billion. C. $48 billion. D. $60 billion. E. $70 billion.
An increase in both supply and demand must increase both equilibrium price and quantity.
a. true b. false
If supply is highly inelastic and demand shifts to the left:
A. price will hardly change at all; quantity will fall significantly. B. price will fall significantly as will quantity. C. price will fall significantly; quantity hardly changes at all. D. price and quantity will hardly change at all.