Which of the following statements regarding accounting and economic profits is FALSE?
A) Economic profits can be zero even if accounting profits are positive.
B) Economic profits = total revenue - (explicit + implicit costs)
C) Accounting profits can be negative if economic profits are positive.
D) Accounting profits = total revenue - explicit costs
C
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In order to increase the capital stock, society must divert ________ that could be otherwise used to increase the supply of ________.
A. money; labor. B. money; consumer goods C. credit; labor D. resources; consumer goods
Other things being equal, along an aggregate demand curve, a higher price level is associated with
A) a lower nominal GDP. B) a higher real GDP. C) higher income levels. D) a lower real GDP.
A person who has taken medical leave is
A) in the labor force. B) not in the labor force. C) unemployed. D) a job leaver.
Politicians often argue that a country's standard of living is reduced when it allows imports into the country. Offer an economically sound counter-argument
What will be an ideal response?