Which of the Following Definitions Is Correct

question 97

Multiple Choice

Which of the following definitions is correct?

• A)Accounting profit + economic profit = normal profit.
• B)Economic profit − accounting profit = explicit costs.
• C)Economic profit = accounting profit − implicit costs.
• D)Economic profit − implicit costs = accounting profits.

---

Definitions:

Microeconomic Analysis

The study of the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.

Macroeconomics

The branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets.

Owner-Occupied Housing

Residential properties that are owned and occupied by the owner, as opposed to being rented out to tenants.

Housework

Housework encompasses the variety of tasks performed to maintain and manage the household, including cleaning, cooking, and laundry.