If x increases whenever y decreases, then x and y are
A) not related.
B) positively related.
C) directly related.
D) negatively related.
E) related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis.
D
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Arguments in support of protectionism (and against free trade) include all of the following EXCEPT
A) new and troubled industries need to be protected until they acquire sufficient strength to compete equally against their foreign counterparts. B) jobs at home should be protected from cheap foreign labor. C) protectionism increase total domestic consumption possibilities. D) national security interests require that nations retain the ability to produce vital materials at home and avoid dependence upon potential enemies.
Which of the following statements is correct?
A) Economic profit takes into account all costs involved in producing a product. B) Accounting profit is not relevant in preparing the firm's financial statement. C) Economic profit always exceeds accounting profit. D) Accounting profit is the same as economic profit.