Economic profit is defined as the difference between revenue and ____
a. explicit cost
b. total economic cost
c. implicit cost
d. shareholder wealth
e. none of the above
b
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In the foreign exchange market, the demand for dollars increases and the demand curve for dollars shifts rightward if the
A) U.S. interest rate differential increases. B) foreign interest rate rises. C) exchange rate falls. D) expected future exchange rate falls. E) U.S. interest rate falls.
The loss to society resulting from a tax includes the
A) deadweight loss. B) consumer surplus paid to the government in the form of tax revenue. C) producer surplus paid to the government in the form of tax revenue. D) deadweight loss plus the consumer surplus and producer surplus paid to the government as tax revenue. E) deadweight loss minus the tax revenue collected by the government.
Average fixed costs
a. will remain unchanged as output expands. b. are defined as the change in total costs divided by the change in output. c. will always increase as output increases. d. will always decrease as output expands.
A price increase causes a consumer's "real" income to:
A. increase. B. remain unchanged. C. decrease. D. vary along the budget line.