What Happened in the First Few Years of the Great

question 117

Multiple Choice

What happened in the first few years of the Great Depression?

• A) Unemployment rose by about 10 percent, and prices rose about 27 percent.
• B) Unemployment rose by about 19 percent, and prices rose about 12 percent.
• C) Unemployment rose by about 20 percent, and prices fell about 12 percent.
• D) Unemployment rose by about 21 percent, and prices fell about 19 percent.

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its current purposes rather than the next best alternative uses.

Accounting Profits

Accounting profits refer to the net earnings of a company as calculated by subtracting total expenses from total revenues, using standard accounting principles.

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs, indicating the profitability of a company beyond basic accounting measures.

Economic Losses

Financial losses that occur when the cost of production exceeds the revenue generated from sales.