Ben quit his job as an economics professor to become a golf professional. He gave up his salary ($40,000 . and invested his retirement fund of $50,000 (which was earning 10 percent interest) in this venture. After all expenses, his net winnings (profit) were $45,000 . Ben's economic profits were
a. $45,000.
b. $5,000.
c. $2,000.
d. zero.
d
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We draw the long-run aggregate supply curve as a vertical line to reflect the fact that
A) changes in the price level do not alter the level of long-run real GDP after full adjustment has occurred. B) an accurate depiction of the production possibilities curve is vertical after full adjustment has occurred. C) technology and resource endowments do not affect long-run real GDP after full adjustment has occurred. D) the productive capacity of the economy never changes after full adjustment has occurred.
The principal econometric techniques used in measuring demand relationships are:
a. the standard deviation b. regression c. correlation analysis d. the coefficient of determination e. both b and c