Which of the following is(are) true?
A. Accounting profits generally overstate economic profits.
B. In the absence of any opportunity costs, accounting profits equal economic profits.
C. Accounting costs generally understate economic costs.
D. All of the statements associated with this question are correct.
Answer: D
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Suppose the economy is at a short-run equilibrium GDP that lies below potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?
A) Output will decrease. B) Short-run aggregate supply will shift to the right. C) Unemployment will rise. D) Prices will increase.
If the marginal product of labor increases because of a shift of the MP curve, that will likely cause
a. an increase in the price of output produced by labor b. an increase in labor demand c. an increase in labor supply d. a fall in the wage paid to labor e. a fall in the number of workers employed
In what category of national income accounting is the purchase of a computer by a business?
A. It is a form of investment spending. B. It is considered consumption. C. It is ignored because computers are considered intermediate goods-an input in the production of other goods and services. D. It is a form of savings.
The government can break up monopolies under federal antitrust legislation.
Answer the following statement true (T) or false (F)