Which of the following is true?
A) A firm's accounting profit is equal to its economic profit.
B) Opportunity costs are the same as explicit costs.
C) A firm's net income is the same as its accounting profit.
D) If a firm's accounting profits are positive, its economic profits must also be positive.
Answer: C
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The government’s budget accounts for about 80 percent of GDP in the United States.
Answer the following statement true (T) or false (F)
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The GDP Price Index rises and nominal value of the domestic currency remains the same. b. The GDP Price Index falls and nominal value of the domestic currency remains the same. c. The GDP Price Index and nominal value of the domestic currency remain the same. d. The GDP Price Index rises and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
In the market for saving, the price is the:
A. relative price. B. nominal interest rate. C. inflation rate. D. real interest rate.
Which of the following income maintenance programs is designed to establish nationwide minimum incomes for the aged, the blind, and the disabled?
A) the Old-Age Survivors' and Disability Insurance (OASDI) program B) the Supplemental Security Income (SSI) program C) the Temporary Assistance to Needy Families (TANF) program D) the food stamps program