Accounting profits are calculated as:

A. total revenue minus explicit costs.
B. total revenue minus all opportunity costs, explicit and implicit.
C. total revenue minus implicit costs.
D. None of these is true.

A. total revenue minus explicit costs.

Economics

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Which of the following transactions will be included in the calculation of GDP using the expenditure method?

A) The sale of a used car by a consumer B) The payment made to a construction worker C) The purchase of a treasury bond by an investor D) The purchase of a private jet by the CEO of a company

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Which of the following activities can give rise to a positive externality?

A) Jogging every morning B) Getting a flu vaccination C) Consuming herbal products D) Buying a pair of gloves

Economics