721. ________ equals revenue minus all explicit costs

A.accounting profit *
B.economic profit
C.normal profit

722. Unemployment means that

A.people are not willing to work at the going wage rate.
B.at the going wage rate, there are people who want to work but cannot find work. *
C.there are some people who will not work at the going wage rate.
D.ther is excess demand in the labout market.

723. Opportunity cost is:

A.a cost that cannot be avoided, regardless of what is done in the future.
B.the cost incurred in the past before we make a decision about what to do in the future.
C.that which we forgot or give up when we make a choice or decision. *
D.the additional benefit of buying an additional unit of a product.

724. The circular flow of goods and incomes shows the relationship between:

A.firms and households *
B.goods and services
C.income and money
D.wages and salaries

725. The branch of economics where mathematics and statics are used to measure and analyze economics activities is called:

A.applied economics
B.econometrics *
D.macro economics

726. Economic profit is:

A.the difference between total revenue and the explicit costs.
B.the difference between total revenue and the opportunity cost of all the resources used in production. *
C.the difference between accounting profit and explicit costs
D.the difference between accounting profit and the oportunity cost of the market-supplied resources used by the firm

727. The father of New economics is

B.J.M keynes *
C.adam smith
D.karl marx

728. The problem refers to the possibility that owners and their manages may have different objectives.

A.company-manager problem
B.prinipal-agent problem *
C.firm-employee problem
D.problem of different objects

729. The total demand for goods and services in an ecomony is known as:

A.aggregate demand *
B.gross national product
C.economy-wide demand
D.national demand

730. An input should be so allocated that the value added by the last unit is the same in all cases.

A.opportunity cost principle
B.equi-marginal principle *
C.discounting principle
D.incremental principle

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