The Difference Between Zero Accounting Profit and Zero Economic Profit

question 36

Multiple Choice

The difference between zero accounting profit and zero economic profit is that

• A)an economic profit of zero indicates a fair rate of return because it includes opportunity cost.opportunity cost and 
• B)an economic profit of zero indicates an unacceptable rate of return because it does not include opportunity cost.
• C)an economic profit of zero indicates more than a fair rate of return because it includes opportunity cost and explicit cost..
• D)an accounting profit of zero indicates a fair rate of return because it includes opportunity cost.

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Definitions:

Amygdala

A part of the brain's limbic system involved in emotion, particularly fear and pleasure.

Frontal Lobes

Lobes at the front of the brain’s cerebral cortex; they contain areas involved in short-term memory, higher-order thinking, initiative, social judgment, and (in the left lobe, typically) speech production.

Cerebral Cortex

is the outer layer of neural tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Adrenal Glands

Small glands located on top of each kidney that produce a variety of hormones including adrenaline and cortisol, which help control heart rate, blood pressure, and other important bodily functions.