Accounting profits are
A. total revenue minus explicit and implicit costs.
B. total revenue minus normal costs.
C. total revenue minus explicit costs.
D. total revenue minus implicit costs.
Answer: C
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How does the social problem of positive externalities differ from the problem created by negative externalities?
A) Positive externalities can create free-rider problems; negative externalities do not. B) Positive externalities are created by altruistic people; negative externalities are not. C) Negative externalities can create free-rider problems; positive externalities do not. D) Negative externalities are created by selfish people; positive externalities are not. E) Trick question: neither positive nor negative externalities create a social problem.
The demand for government regulation of sellers most often originates with
A) consumers. B) economists. C) politicians. D) sellers.
Market failure occurs when
A) a good is too expensive for the market to provide. B) an unrestrained market economy leads to too few or too many resources going to a specific economic activity. C) one good is superior to another and drives it out of the market. D) the stock market experiences a very large loss.
What are the three primary measures used in macroeconomics to assess the performance of an economy?
What will be an ideal response?