Explain the difference between economic and normal profits
What will be an ideal response?
Normal profit is the amount of profit necessary to insure that a firm continues to operate in the long run, and it is based on the profit that could be earned in its next best alternative activity. It is equal to the sum of its accounting cost and opportunity cost. Economic profit is the amount of profit above normal profit: profit in excess of what could be earned in its next best alternative activity.
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If the United States had a financial account deficit of $50 billion, we could say the United States had
A) net imports of $50 billion. B) net foreign borrowing of $50 billion. C) acquired net foreign assets of $50 billion. D) a current account deficit of $50 billion.
While Medicaid is targeted towards low-income individuals, exact qualifications are determined by _____
a. the Department of Health and Human Services b. state governments c. local governments d. judicial rulings
Within the U.S. population, teenagers (ages 16-19) have lower rates of labor-force participation than adults of prime working age (ages 25-54), regardless of race or gender
a. True b. False Indicate whether the statement is true or false
The change in price that results from a rightward shift in demand will be greater if
A) the supply curve is horizontal than if the supply curve is upward sloping. B) the supply curve is relatively steep than if the supply curve is relatively flat. C) the supply curve is upward sloping than if the supply curve is vertical. D) the supply curve is horizontal than if the supply curve is vertical.