As a general rule, when accountants calculate profit they account for explicit costs but usually ignore
a. certain outlays of money by the firm.
b. implicit costs.
c. operating costs.
d. fixed costs.
b
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An independent relationship between two variables is shown in a graph by
A) an upward-sloping line. B) a horizontal or a vertical line. C) a downward-sloping line. D) a steeply sloped line. E) any straight line curve.
According to the information, Japan's real GDP per person
A) is higher than Brazil's and therefore we can definitely conclude that economic well-being is higher in Japan. B) is $33,000. C) is lower than Brazil's, but its real GDP is higher which makes standard of living higher in Japan. D) cannot be expected to change much given the other factors affecting GDP growth including political freedom and life expectancy.
An actuarially fair return means
A. returns on investments are indexed to the stock market. B. returns on investments have to be positive. C. benefits received, on average, would be equal to the premiums paid. D. premiums for insurance are generally paid by the government.
A market failure occurs when:
a. the market outcome is viewed as unfair by a majority of consumers. b. a market fails to provide the good at a zero price. c. quantity demanded exceeds quantity supplied. d. the market outcome is not the socially efficient outcome. e. prices are determined by the interaction of the forces of demand and supply and not through central planning.