If the Money Store earns a normal profit this year, its
a. economic profit is equal to its accounting profit
b. economic profit is zero
c. economic profit is equal to the average accounting profit in other industries
d. accounting profit is zero
e. accounting profit is less than its economic profit
B
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Refer to the above figure. A movement from B to C would be NOT be the result of
A) an increase in worker productivity. B) an increase in foreign income levels. C) an increase in government spending. D) an increase in consumption spending.
During 2010, a country reports that its price level fell and the money wage rate did not change. These changes led to
A) a lower real wage rate, lower profits, and a decrease in the quantity of real GDP supplied. B) a higher real wage rate, lower profits, and a decrease in the quantity of real GDP supplied. C) a higher real wage rate, higher profits, and an increase in the quantity of real GDP supplied. D) a lower real wage rate, higher profits, and an increase in the quantity of real GDP supplied. E) no change in the real wage rate and an increase in aggregate demand.
Full employment exists when
A) there is only frictional and structural unemployment. B) the economy is at the natural unemployment rate. C) there is no cyclical unemployment. D) All of the above answers are correct.
The opportunity cost doctrine suggests that which of the following are not costs of government educational programs? a. The wages of teachers
b. The foregone earnings of participants. c. Stipends paid to participants. d. Materials used by students.