Accounting profit is
a. always less than economic profit
b. never less than economic profit
c. equal to economic profit if a normal profit is earned
d. less than economic profit only when implicit costs are greater than explicit costs
e. greater than economic profit only when implicit costs are greater than explicit costs
B
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The efficient quantity of gasoline to sell in Motorland is
A) 1.7 million gallons per month. B) 1.8 million gallons per month. C) 1.6 million gallons per month. D) 1.9 million gallons per month.
Persistent high inflation combined with high unemployment in an economy is known as _____
a. disinflation b. stagflation c. hyperinflation d. demand-pull inflation
If we observe that a consumer's budget constraint has shifted outward, we can assume that the consumer will buy
a. fewer normal goods and more inferior goods. b. more normal goods and fewer inferior goods. c. more normal goods and more inferior goods. d. fewer normal goods and fewer inferior goods.
Answer the question on the basis of the following national income data for the economy. All figures are in billions of dollars. Personal Consumption Expenditures 400 Government Purchases 128 Gross Private Domestic Investment 88 Net Exports 7 Net Foreign Factor Income 0 Consumption of Fixed Capital 43 Taxes on Production and Imports 50 Compensation of Employees 369 Rents 12 Interests 15 Proprietor's Income 52 Corporate Income Taxes 36 Dividends 24 Undistributed Corporate Profits 22 Statistical Discrepancy 0 Refer to the above data. Net domestic product is:
a) $520. b) $580. c) $623. d) $573.