Typically a firm's economic profit will be
A) greater than its accounting profit.
B) less than its accounting profit.
C) equal to its accounting profit.
D) equal to its accounting profit minus its tax liability.
E) equal to its accounting profit plus the market value of any unsold inventory.
Question 2
Which of the following statements is true?
A) All rational economic agents attempt to maximize their income.
B) A rational consumer makes his decisions depending on what the majority chooses.
C) A budget constraint is an economic tool that quantifies the trade-off between consumption of two goods.
D) A trade-off refers to the exchange of goods between economic agents through a barter system or mutual exchange.
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