Accounting profit differs from economic profit because:
a. of differences in the manner in which revenue is calculated.
b. economic costs include depreciation, while accounting costs do not.
c. accounting costs are generally higher than economic costs because accounting costs include explicit and implicit costs, while economic costs include only explicit costs.
d. economic costs are generally higher than accounting costs because economic costs include all opportunity costs, while accounting costs include explicit costs only.
Answer: d. economic costs are generally higher than accounting costs because economic costs include all opportunity costs, while accounting costs include explicit costs only.
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If the Fed sells bonds, the short run impact of this policy will tend to include: a. an increase in the inflation rate. b. a reduction in unemployment
c. an increase in real output. d. an increase in real interest rates.
Future shortages in natural resource markets are not expected to occur widely due to:
A. Reduced hours at work B. Reduced population growth C. Higher standards of living D. Higher per capita consumption