Economic profit is
A. total revenue × (explicit costs - implicit costs).
B. total revenue - (explicit costs - implicit costs).
C. total revenue - (explicit costs + implicit costs).
D. total revenue + (explicit costs + implicit costs).
Answer: C
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Which of the following is not correct?
a. Most people who become unemployed will soon find jobs. b. In an ideal labor market, wages would adjust to ensure that all workers are always fully employed. c. The unemployment rate occasionally falls to zero. d. There are always some workers without jobs, even when the overall economy is doing well.
Which of the following is often referred to as the basic postulate of economics?
a. Individuals act only out of selfish motives. b. Incentives matter; individuals respond in predictable ways to changes in personal costs and benefits. c. The accuracy of the assumptions is the best test of an economic theory. d. The value of a good is objective; it is equal to the cost of pro
Gross domestic product is the
A. most comprehensive measure of production of a nation’s resources. B. total of goods and services purchased by consumers. C. most comprehensive measure of total output in the United States. D. most defined measure of net exports.
Each C + I + G + (X ? IM) expenditure schedule is drawn assuming a specific
A. income level. B. spending level. C. production level. D. price level.