It Is Not True of Economic Profits That They

question 14

Multiple Choice

It is not true of economic profits that they

• A)are a reward for bearing risks.
• B)are generally greater than accounting profits.
• C)are zero in a competitive market.
• D)are difficult to measure.

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Definitions:

Economics

The social science concerned with the production, distribution, and consumption of goods and services, and the study of human behavior in allocating resources.

Weekend

The part of the week typically comprising Saturday and Sunday, commonly understood as a time of rest from work.

Commodity 1

Typically refers to a basic good used in commerce that is interchangeable with other goods of the same type; however, the context "1" could suggest a specific focus within a larger category of commodities.

Budget Line

The budget line represents the combination of goods and services that a consumer can purchase with a given budget, considering the prices of those goods and services.