Accounting Profit Is ________ and Is Equal to ________

question 33

Multiple Choice

Accounting profit is ________ and is equal to ________.

• A) income paid to capital; r*K*
• B) zero; the real interest rate
• C) equal to two-thirds of national income; r*
• D) the same as economic profit; zero
• E) equal to one-third of the labor income; r*L*

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Definitions:

Employer's Duty

The responsibilities and obligations an employer has towards their employees, including providing a safe working environment.

Invitees

Individuals who are invited onto a property for the benefit of the property owner, often in a business context, and are owed a high duty of care.

Reasonable Care

Reasonable care refers to the legal obligation to avoid acts or omissions that could foreseeably harm others, demonstrating the care a reasonable person would exercise under similar circumstances.

Dangerous Conditions

Circumstances or factors that pose a risk of injury to people or damage to property.