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Accounting Profits Differ from the Economist's Concept of Profits Because

Question 60

Multiple Choice

Accounting profits differ from the economist's concept of profits because accounting profits


A) fall less rapidly during recessions.
B) are excluded from calculations of the national income.
C) are corrected for differences in the quality of management provided by owners.
D) are measured in a way that does not fully reflect the opportunity costs of firms' resources.
E) vary among industries, whereas economic profits are the same among all industries.

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