Asked by
bridget casco
on Dec 12, 2024
Verified
In a world of imperfect knowledge and uncertainty, the return to investors who undertake projects that increase the value of resources is called
A) economic profit.
B) accounting profit.
C) the inflationary premium.
D) the real interest rate.
Imperfect Knowledge
A situation where all parties in an economic transaction do not possess full or equal information, leading to market failures or inefficiencies.
Return Investors
The profit or loss generated on an investment over a certain period of time, expressed as a percentage of the investment's initial cost.
Economic Profit
The difference between a firm's total revenue and its total economic costs, including both explicit and implicit costs.
- Pinpoint the contributors to economic profit and set it apart from other profit variations.
- Evaluate the contribution of risk elements and uncertainty to the decisions made for investments and their effect on the generation of economic wealth.
Verified Answer
CN
Learning Objectives
- Pinpoint the contributors to economic profit and set it apart from other profit variations.
- Evaluate the contribution of risk elements and uncertainty to the decisions made for investments and their effect on the generation of economic wealth.