If the return on capital is less than the cost of capital
A) economic profits are zero.
B) accounting profits are zero.
C) then accounting profits minus economic profit are zero.
D) economic profits are negative.
D
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Which of the following would most likely cause a country's production possibilities set to shift outward at every point along the frontier?
A) a decrease in idle capital B) a decrease in unemployment C) a general technological advance that affects all sectors of the economy D) a technological advance in only one sector of the economy E) none of the above
According to most experts, which of the following factors is most important in causing health care costs to rise?
A. The aging of the population. B. Rising incomes. C. Malpractice suits. D. Fee-for-service health insurance and cost-increasing technology.