Which of the following equations is CORRECT?
A. accounting profit = total revenue - (explicit costs + implicit costs)
B. economic profit = accounting profit - explicit costs
C. normal profit = accounting profit + economic profit
D. economic profit = accounting profit - implicit costs
Answer: D
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Adam Smith used the term commercial society to refer to a society in which
A) business interests control the political system. B) everyone identifies value with price. C) everyone lives by exchanging. D) increased income is everyone's principal life goal. E) people behave without regard for the interests of others.
Which of the following could explain an increase in the equilibrium wage rate for a particular job?
a. a decrease in the amount of training needed to perform this job b. an increase in the amount of risk associated with this job c. a decrease in the amount of risk associated with this job d. an improvement in the working conditions associated with this job e. increased migration of workers to this geographic location