If Economic Profit Is Equal to Zero, Then

question 291

Multiple Choice

If economic profit is equal to zero, then

• A) the entrepreneur's profit as measured by accountants is also equal to zero.
• B) the entrepreneur's profit as measured by accountants must be less than zero.
• C) the entrepreneur is making only a normal profit.
• D) The entrepreneur's profit cannot be determined based on the information given.

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Definitions:

Equilibrium Interest Rate

The interest rate at which the quantity of money demanded equals the quantity of money supplied, stabilizing the economy.

Loanable Funds

Refers to all the money available for borrowing in a nation's economy, which comes from savings and is used for loans and investments.

Shifted

Shifted refers to the change in position, direction, or tendency of an object, market demand/supply curve, or another measurable factor.

Income Tax

A tax imposed by the government on the income earned by individuals and businesses within its jurisdiction.