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Flashcards in Economics Deck (67)
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61

How to international trade restrictions affect foreign producers?

They are bad for foreign producers

Demand curve shifts left

Fewer buyers

They must charge lower prices

62

How do international trade restrictions affect foreign consumers?

They are good for foreign consumers

Supply curve shifts right

Goods purchased at lower prices in the foreign markets

63

How do international trade restrictions affect domestic consumers?

They are bad for domestic consumers

Supply curve shifts left

Fewer goods bought due to higher prices

64

What is Accounting Cost?

Explicit (Actual) cost of operating a business

Implicit costs are opportunity costs

65

What is Accounting Profit?

Revenue - Accounting Cost

66

What is Economic Cost?

Explicit + Implicit Cost

67

What is Economic Profit?

Revenue - Economic Cost