Under the Articles of Confederation, the National Government Could

question 154

Multiple Choice

Under the Articles of Confederation, the national government could

• A) run the post office.
• B) levy taxes.
• C) regulate commerce.
• D) establish a national judicial system.
• E) None of the above.

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Definitions:

Accounting Profit

Accounting profit is the financial gain calculated by subtracting total explicit costs from total revenue.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs necessary for the production of goods or services.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own use, without any direct payment made.

Opportunity Cost

The worth of the best alternative given up to make a choice.