Pure or economic profit is:
A. the amount by which accounting profits exceed normal profits.
B. determined by subtracting explicit costs from total revenue.
C. the return required to retain entrepreneurial talent in some particular line of production.
D. the return to any resource the supply of which is perfectly inelastic.
Answer: A
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Identify the correct statement from the following
a. Modern telecommunications turned cities like Omaha and Bangalore into new resources for the world. b. Being only 10 hours away from most of the industrial world enabled Anchorage, Alaska to become the busiest cargo airport in the world. c. Call centers in the U.S. set up shop in small towns to prevent large-scale migration to bigger cities. d. Unless a city is in an advantageous location for conducting any form of business, it is difficult to boost its economy in today's world.
Income elasticity of demand describes:
A. which way the demand shifts in response to a change in price. B. how much the quantity demanded changes in response to a change in consumers' incomes. C. how quickly the market will change in response to a change in consumers' incomes. D. how much the quantity demanded changes in response to a change in price.