When economic profits are negative, accounting profits
A) must be positive.
B) will be negative.
C) will equal zero.
D) could be positive, negative or zero.
D
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In an economy with no government or foreign sector, which of the following always holds true, ex-post?
A) Consumption equals investment. B) Velocity equals money demand. C) Saving equals consumption. D) Saving equals investment.
A company currently sells 10,00 . units at $9/unit and makes $20,00 . accounting profit. Variable costs currently stand at $6 per unit. By how much would variable costs have to increase before the company makes zero accounting profits?
a. $1.00 b. $2.00 c. $3.00 d. $4.00
Riley travels a great deal, and over the past several years he has read dozens of reviews of hotel chains, all of which rave about the clean rooms and great service at Comeon Inns. Last month, Riley checked into a room at a Comeon Inn for the first time, only to find the room filthy and the service lousy. He decided the Comeon Inn chain is inferior to other hotel chains
a. Riley was irrational to have believed the reviews that he had read. b. Riley was rational to have changed his mind about Comeon Inns based on his one experience. c. Riley is an example of someone who gives too much weight to a small number of vivid observations. d. Riley is an example of someone who is reluctant to change his mind.
Which of the following is true about the chairman of the Federal Reserve Board of Governors?
A. The chairman is elected by the Fed regional bank presidents. B. The chairman serves a 21-year term. C. A new chairman is elected as soon as a new U.S. president takes office. D. The chairman can be reappointed for more than one term.