Accounting profit will always be
A) more than economic profit.
B) equal to sunk costs.
C) less than economic profit.
D) equal to implicit costs.
Answer: A
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A major U.S. motive for negotiating a free-trade agreement with Mexico was to
a. increase immigration into the United States b. encourage Mexico's recent drive to achieve a more market-oriented economy c. keep Mexico from going Communist d. achieve, ultimately, political union with Mexico e. help foster the study of the Spanish language in the United States as a means to trading with all Spanish-speaking countries
Why are there significant time lags in monetary policy?
a. Financial markets are inefficient and information takes several months to impact them. b. Changes in monetary policy only affect future projects such as factories, not current ones. c. Interest rates takes several months to change after a change in money supply. d. Interest rates are fixed and it takes several months to change laws to have the targets amended. e. Because of the Fed's relative inability to convince Congress about the necessity of a particular monetary policy.