Suppose a firm has total revenue of $200 million, explicit costs of $190 million, and implicit costs of $20 million. This firm's accounting profit is:
a. $80 million.
b. $70 million.
c. $10 million.
d. ?$10 million.
c
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The negative slope of the production possibilities frontier represents the idea
A) that free lunches are possible. B) of tradeoffs, that in order to produce more of one good, the nation must produce less of another. C) of unemployment. D) of inefficient production. E) that prices rise as less is produced.
When import restrictions are placed on a good, and as a result the price of the good increases, the demand curve for that good will
A) shift rightward. B) shift leftward. C) become steeper. D) be unaffected.
An increase in real interest rates will lead to an increase in the quantity of loanable funds supplied
a. True b. False Indicate whether the statement is true or false
Which of the following would be considered a resource cost of inflation?
a. A cost of living adjustment b. Loss of purchasing power c. Additional trips to the bank d. Adjusting nominal interest rate to get real rates e. Creeping inflation