Liberals Argue That Realists Are Essentially

question 16

Multiple Choice

Liberals argue that realists are essentially

• A) optimistic about global politics.
• B) pessimistic about global politics.
• C) neither optimistic nor pessimistic.
• D) correct, but wrong about human nature.

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Definitions:

Economic Profit

A measure of profitability calculated by subtracting both explicit and implicit costs from total revenues, reflecting the true economic performance of a business.

Implicit Costs

Represent the opportunity costs of using resources that a firm already owns for production, instead of allocating them for other purposes.

Economic Profits

The margin between total earnings and all incurred costs, accounting for both obvious and concealed expenses.

Accounting Profits

Net income reported on a company's financial statements, calculated as total revenues minus explicit costs, excluding opportunity costs.