Accounting profits are total revenues minus
A. explicit costs and all other relevant opportunity costs.
B. explicit costs.
C. explicit and implicit costs.
D. all relevant opportunity costs.
Answer: B
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Explain how market economies are generally better able to achieve technological progress than are centrally planned economies
What will be an ideal response?
Saying the consumer is rational means
A) the consumer is a stand-in for all consumers. B) the consumer is getting rationed. C) the consumer makes reasonable choices. D) the consumer makes the best choices.
Which statement is false?
A. Under Soviet communism, government planning was substituted for the price mechanism. B. The entire Soviet economy was a Rube Goldberg contraption of subsidies, fixed prices, bureaucratic rules and regulations, special privilege, and outright corruption. C. Had Mikhail Gorbachev not begun dismantling the communist bureaucracy, the Soviet system probably would have been able to continue carrying on business as usual for another century. D. None of the statements are false.
Refer to the graph shown. If the market price is $4, a perfectly competitive firm:
A. earns a profit. B. incurs a loss but can still cover its variable costs and some of its fixed costs. C. incurs a loss and cannot cover its variable costs. D. breaks even.