A return above implicit and explicit costs is called
A. accounting profit.
B. economic profit.
C. opportunity cost.
D. total revenue.
B. economic profit.
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If output rises, then income
a. drops by an equal amount b. remains stable c. rises twice as fast as output d. rises slowly e. rises by an equal amount
Market clearing in the loanable funds market
a. violates Say's Law b. guarantees that total spending will be just sufficient to purchase whatever output is produced c. means that the interest rate never changes d. guarantees that total spending will equal the quantity of loanable funds demanded e. requires that the government run a budget deficit
Expansionary monetary policy will decrease interest rates and decrease the velocity of money
a. True b. False Indicate whether the statement is true or false
Traditionally, nations pegged their currencies to _______, and so trade was accomplished with _______ exchange rates.
A) the pound sterling; floating B) gold; fixed C) the U.S. dollar; floating D) silver; fixed