Which of the following is the best example of a normative question?
A. Will increasing the money supply affect interest rates?
B. How does the market for corn work?
C. Will the redistribution of income make society better off?
D. How do prices affect the market for coffee?
Answer: C
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Distinguish between implicit and explicit costs and give examples of each. In addition, explain how explicit and implicit costs affect the distinction between economic profit and accounting profit
What explains the distinction between the two measures of profit?
A firm's marginal resource cost curve is
a. horizontal only if the firm is a price taker in the product market b. horizontal only if the firm is a price taker in the resource market c. vertical only if the firm is a price taker in the product market d. vertical only if the firm is a price taker in the resource market e. horizontal only if the firm is a price taker in both the product and resource markets