A Firm's Total Explicit Costs Are $1,000

question 192

Multiple Choice

A firm's total explicit costs are $1,000. Its total implicit costs are $500, and it has a total revenue of $900. This firm receives

• A) an accounting profit only.
• B) an economic profit only.
• C) both an economic profit and an accounting profit.
• D) neither an economic profit nor an accounting profit.

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Definitions:

GDP

The total value of all produced goods and services within a country over a particular time period is what Gross Domestic Product (GDP) measures.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy in a year, intended to adjust the nominal GDP to reflect changes in price levels.

National Income

The total value of all goods and services produced by a country's economy over a specific period, often used as a measure of economic health.

Wages

Financial compensation paid by an employer to an employee for their labor, typically calculated on an hourly, daily, or piecework basis.