Which of the following is most likely to be true of economic and accounting profits?
a. Economic profits are less than accounting profits.
b. Accounting profits are less than economic profits.
c. Economic profits plus accounting profits equal zero.
d. Accounting profits minus economic profits equal zero.
A
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The second largest component of the federal government revenues is receipts from ________
A) corporate income tax B) excise tax C) social insurance tax D) value-added tax
For the single-price monopoly shown in the figure above, the deadweight loss is
A) zero. B) between $0 and $10. C) between $10.01 and $20. D) more than $20.01.
Equity contracts
A) are claims to a share in the profits and assets of a business. B) have the advantage over debt contracts of a lower costly state verification. C) are used much more frequently to raise capital than are debt contracts. D) are not subject to the moral hazard problem.
In general, non-equilibrium prices occur because:
a. information is imperfect and adjustment is costly. b. supply curves shift along stationary demand curves. c. demand curves shift along stationary supply curves. d. monopolists charge prices above marginal cost.