Economic Profit Equals Total Revenue Minus

question 56

Multiple Choice

Economic profit equals total revenue minus

• A)the cost of resources bought in the market.
• B)the implicit rental rate.
• C)the opportunity cost of production.
• D)the cost of resources supplied by the owner.
• E)the cost of resources owned by the firm.

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Definitions:

Indirect Tax

A tax levied on goods and services rather than on income or profits.

Corporate Income Tax

A tax imposed on the net income of corporations, calculated after allowable deductions and credits.

Federal Personal Income Tax

A tax levied by the federal government on the annual income of individuals.

Federal Tax Revenue

The financial income generated by the government through taxation, which includes individual income taxes, corporate taxes, and other taxes.