What is the difference between economic and accounting profit? Why is a distinction between them important?
An economic profit includes implicit costs and accounting profit does not. A distinction between them is important because an accounting profit is a relative amount of money. Some amount of accounting profit may or may not be a sufficient amount of profit to keep an entrepreneur in his/her present line of business. Whereas an economic profit, if it is earned, is always good news because it is an amount of profit above the entrepreneur's opportunity cost.
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Why does the government intervene in the market for research, especially medical research?
What will be an ideal response?
The two most common types of money in circulation in the United States today consist of
A) private bank notes and commodity-backed paper currency. B) commodity-backed paper currency and fiat money. C) fiat money and transaction deposits at banks. D) transaction deposits at banks and commodity money.