Can accounting profit be positive while economic profits are negative?
A. No. The two concepts are identical.
B. No. Economic profits must always be larger than accounting profits.
C. Yes, if total revenue covers opportunity costs but not explicit costs.
D. Yes, if total revenue covers explicit costs but not opportunity costs.
Answer: D
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Assume Px is the price of good X on the horizontal axis and Py is the price of good Y on the vertical axis. The slope of the budget line equals:
a. Py / PxY. b. PyQy / Px Qx. c. (1 ? Py / Px). d. Px / Py.
Indicate whether each of the following events would lead to depreciation or appreciation of the U.S. dollar under a system of floating exchange rates. a. A drop in U.S. interest rates relative to foreign interest rates b. An increase in the preferences of foreign citizens for U.S. goods c. Faster economic growth in the United States relative to its trading partners d. A decrease in the U.S. money supply e. Rising U.S. inflation relative to foreign inflation
What will be an ideal response?
When a tax is levied on a good, the buyers and sellers of the good share the burden,
a. provided the tax is levied on the sellers. b. provided the tax is levied on the buyers. c. provided a portion of the tax is levied on the buyers, with the remaining portion levied on the sellers. d. regardless of how the tax is levied.
If we subtract the number of persons not in the labor force from the civilian noninstitutional population, we get the number of people in the
A) ranks of the unemployed. B) civilian labor force. C) ranks of the employed. D) ranks of discouraged workers. E) none of the above