If, as an entrepreneur, I am earning accounting profits of $70,000 per year and the opportunity cost of my time is $80,000
A. I should close my business.
B. I am earning economic profits of $10,000.
C. I am earning economic profits of $150,000.
D. I am earning economic profits of $70,000.
Answer: A
You might also like to view...
________ was the main proponent of the view that changes in the money supply can drive business cycles
A) Milton Friedman B) John Maynard Keynes C) Adam Smith D) David Ricardo
For the CPI, the market basket of goods and services is modified
A) each time the Consumer Expenditures Survey is conducted. B) about every 10 to 20 years. C) each month when the Price Survey is completed. D) each year to reflect changes in consumer purchasing habits. E) at the discretion of the President.
A competitive equilibrium is a state of affairs in which
A) markets clear, and output is maximized. B) output is maximized, and all agents are equally well-off. C) all agents are equally well-off and agents are price-takers. D) economic agents are price takers and markets clear.
If the MPC in the U.S. was low, it would increase the value of the multiplier
a. True b. False Indicate whether the statement is true or false