Accounting profits are calculated as:
A. total revenue minus explicit costs.
B. total revenue minus all opportunity costs, explicit and implicit.
C. total revenue minus implicit costs.
D. None of these is true.
A. total revenue minus explicit costs.
You might also like to view...
Which of the following statements is true?
A) A rational consumer makes his decisions depending on what the majority chooses. B) A trade-off refers to the exchange of goods between economic agents through a barter system or mutual exchange. C) A budget constraint is an economic tool that quantifies the trade-off between consumption of two goods. D) All rational economic agents attempt to maximize their income.
The cross elasticity of demand for complementary products must:
a. be greater than one. b. be less than one. c. be zero. d. exceed zero. e. be negative.
What is the most appropriate test to evaluate whether a government-spending program will improve living standards and lead to higher income levels?
A) The value of the output generated by the government-spending program compared to its opportunity cost B) The total number of jobs created by the program C) The reduction in the rate of unemployment as the result of the spending on the program D) The taxes necessary to finance the program compared to the revenues generated by the additional employment created by the program
A goldsmith with 100 gold coins in his safe and 200 goldsmith's receipts in circulation has a reserve ratio of _____%.
Fill in the blank(s) with the appropriate word(s).