In What Way Does an Economist's Measurement of Profit Differ

question 15

Multiple Choice

In what way does an economist's measurement of profit differ from an accountant's?

• A) Accountants calculate total revenue differently than do economists.
• B) Accountants do not always include all of the opportunity costs when calculating total production costs.
• C) Economists calculate higher profits for firms as economic profit generally exceeds accounting profit.
• D) Economists do not always include all of the opportunity costs when calculating total production costs.

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Definitions:

Crisis Situation

A significant and often sudden event or condition that requires immediate attention and action to protect life, property, or the environment.

Pressure

The psychological experience produced by urgent demands or expectations for a person’s behavior that come from an outside source.

Norms

Shared expectations or rules that guide behavior within a group or society.

Conformity

The action of aligning one's attitudes, beliefs, or behaviors to match those of a group or societal norms, often due to real or perceived social pressure.