Suppose your accountant told you that the $50,000 you made last year was your normal profit. When you asked him what your accounting profit was he replied that it was precisely the same as your normal profit. You wouldn't have to ask what your economic profit was because you know it must be
a. 0
b. $50,000
c. $100,000
d. $50,000 loss
e. $100,000 loss
A
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When a firm's demand curve is downward-sloping, its marginal revenue at any positive sales quantity is ______ its price.
A. greater than B. less than C. equal to D. less than or equal to
Most economists believe that there are positive externalities associated with education. If they're right, the market for education fails to provide an efficient or socially optimal allocation of resources because the equilibrium
a. price and quantity would be too high b. price would be too low and quantity would be too high c. price and quantity would be too low d. price would be too high and quantity would be too low e. price and quantity would be just right
An increase in the price of dairy products produced domestically will be reflected in
a. both the GDP deflator and the consumer price index. b. neither the GDP deflator nor the consumer price index. c. the GDP deflator but not in the consumer price index. d. the consumer price index but not in the GDP deflator.
The word that best describes the relationship between the required reserve ratio and the money supply is
A) direct. B) constant. C) inverse. D) roundabout.