Biology Forums - Study Force

John moved his office from a building he was renting downtown to the carriage house he owns in back of his house. How will his profit change?
 a. Implicit costs fall.
  b. Explicit costs remain unchanged while implicit costs rise.
  c. Economic profit must fall.
  d. Explicit costs rise.
  e. Accounting profit will rise.

QUESTION 2

Suppose Joan uses her savings to purchase computer equipment for her new consulting business. Soon after this, the market interest rate rises. As a result, her
 a. explicit costs rise immediately
  b. accounting profit falls immediately
  c. accounting profit rises immediately
  d. economic profit rises immediately
  e. economic profit falls immediately

QUESTION 3

Suppose a professor gives up her teaching job to devote her time to writing textbooks. If salaries of professors rise,
 a. her accounting profit will rise
  b. her accounting profit will fall
  c. her explicit costs will rise
  d. her economic profit from textbooks will fall
  e. her economic profit from textbooks will rise

QUESTION 4

If the Baloney Store earns more than a normal profit, its
 a. economic profit must be greater than its accounting profit
  b. economic profit is positive
  c. economic profit is, therefore, equal to its accounting profit
  d. accounting profit is zero
  e. accounting profit is less than its economic profit

QUESTION 5

If the Money Store earns a normal profit this year, its
 a. economic profit is equal to its accounting profit
  b. economic profit is zero
  c. economic profit is equal to the average accounting profit in other industries
  d. accounting profit is zero
  e. accounting profit is less than its economic profit

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Amazing, correctly answered