If economic profit is equal to zero, then
A) the entrepreneur's profit as measured by accountants is also equal to zero.
B) the entrepreneur's profit as measured by accountants must be less than zero.
C) the entrepreneur is making only a normal profit.
D) The entrepreneur's profit cannot be determined based on the information given.
C
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The government expenditure multiplier is used to determine the
A) amount aggregate supply is affected by a change in government expenditure. B) amount aggregate demand is affected by a change in government expenditure. C) extra scrutiny government action receives. D) amount private consumption is decreased by government expenditure. E) extent to which automatic stabilizers must be changed in order to avoid recessions.
In a bank panic, the source of contagion is the
A) free-rider problem. B) too-big-to-fail problem. C) transactions cost problem. D) asymmetric information problem.
Increased government spending for investments such as highways or harbors financed by increasing the public debt would most likely:
A. increase the amount of private capital stock in the future. B. increase the amount of public capital stock in the future. C. crowd out future public investment. D. reduce the economy's future productive capacity.
For all intents and purposes, the Great Depression ended in
A. 1933. B. 1937. C. 1941. D. 1945.