For answers to the practice multiple-choice questions click on "Read more". 1. A 2. E 3. D Need more practice? Get the Ultimate Review Packet. It's FREE to start. Step 1: Go to: www.ultimatereviewpacket.com/courses/micro Step 2: Create a free account Step 3: Enroll in the free version of the Macroeconomics packet
Ahmed was here… Ahmed did the first question wrong because of a simple addition mistake! Ahmed learnt that you should never rush off on simple arithmetic. Ahmed is feeling better 😊
Hi, Mr. Clifford! Thanks for your videos. I am now studying Political Science and decided to take courses in Economics. Your videos really helped me a lot especially in macroeconomics to which Mankiw complicates everything hahaha! By the way, YOU LOOK GOOD WITH YOUR BEARD!
Okay I got questions 2 & 3 correct. But in question 1, it says that Sally left her job where she mad $25,000 she used a space that she could have rented for $10,000 to run her new business. That would mean that she could have made a total of $35,000 with her job and the rent right? Sally made $30,000 in Accounting Profit from her new business ($155,000- $125,000). So if you take what she could have made which is $35,000 and take what she made from the business which is $30,000 then she missed out on an additional $5,000 right? which would mean her economic profit is -$5,000 right?
@@barborabubenikova4280 As the Total Revenue from her printing business ($155,000) is less than her Total Costs (Implicit+Explicit = $25,000 (lost job) + $10,000 (lost rent) + $125,000 (the explicit costs of running the business = $160,000). Clearly, her economic profit is negative ($155,000 - $160,000 = - $5,000) despite her accounting profit being positive ($155,000 - $125,000 = $30,000)
Hey, in regard to question 1, i wanted to ask about the $25000 cost being explicit cost. Is it not forgone salary? like is it not that we are supposed to include it in any of the calculations because its not contributing to the business
if economic profit includes opportunity cost, why is it 0 at the end? if accounting profit does not include implicit costs, why is it positive because of implicit costs at the end? I'm confused.... Mr. Clifford, I must have misunderstood something - which is the implicit/opportunity cost one? -10/4/2021 Monday
accounting profit includes only explicit costs, whereas economic profits includes both implicit and explicit costs. hence the later can be 0 even if the former is positive, assuming the amount of revenue earned is the same
Any cost is an opportunity cost. Opportunity cost includes both explicit costs and implicit costs. -------------------------------------------------------------------------------- Accounting Profit = Total Revenue - Explicit Costs -------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------------- Economic Profit = Total Revenue - Opportunity Costs (Implicit Costs + Explicit Costs) ----------------------------------------------------------------------------------------------------------------------------------------
because even after calculating opportunity cost the balance is 0$; if you would have done that other thing(work for that job) the return you would've get from that would be equal to thing you did instead of it( say a business or something) Ig that's what Mr. Clifford is saying here**
So in order to be able to pay an ice cream 🍦for himself he has to make and sell 1.7 hence if this was an enclosed economy no one involved would be able to pay an ice cream without making and selling more o.o something is wrong here how does this fit within the circular economy flow theory?
So, as she could have worked and gotten a good profit of 25,000 ( income ) but she chose to start up a business also not to forget the opportunity cost of losing the rent here 10,000. Futher, her allover revenue is 155,000 sounds great until all the costs getting deducted leaves 20,000 of income to her in accounting profit but she could have earned 25,000 thus she made an economic loss of -5,000
So lets suppose the total revenue of a cobbler is 10 dollars and the explicit cost is 2 dollars, so according to accounting profit, it 8 dollars. Now suppose the cobbler wanted to become an actor but is not one. So if he would have invested his time in acting rather than in the former job, he would gained more than 10 dollars, lets say 500 dollars (idk if its a just price). So, the economic loss is -492 dollars. So everyone in the world may have wanted to become someone else or may have become someone else with higher income than their present job if they would have invested their time in that dream job. So everyone in the world is in economic loss cause of their implicit costs (leaving the person with the highest income in the world). This does not makes any sense! As to have zero economic profit , the cobbler has to earn 500 dollars. If he manages to do so, then he may want to become a business person earning more....and it would go on and on. So there would never be an economic profit since you may have invested your time in some other job with higher income and other job with more income......and so on. The implicit costs may never stop as human desire is infinite.
For answers to the practice multiple-choice questions click on "Read more".
1. A
2. E
3. D
Need more practice? Get the Ultimate Review Packet. It's FREE to start.
Step 1: Go to: www.ultimatereviewpacket.com/courses/micro
Step 2: Create a free account
Step 3: Enroll in the free version of the Macroeconomics packet
cut the beard, it makes you look older
@@pietrocandriella7804 and wiser, and more handsome
Ahmed was here… Ahmed did the first question wrong because of a simple addition mistake! Ahmed learnt that you should never rush off on simple arithmetic. Ahmed is feeling better 😊
Thank you very much
It has been years of learning economics from this fabulous teacher. he helped me in my A levels, BBA and I am again here for my MBA.... GOOD WORK SIR
The beard looks good, and i got the last two questions right! this channel is really good!
Great content. Filling in the blanks from my MBA professor's Econ for managers class. You are doing a great job making this fun and engaging. Thanks.
Keep it!, 6th year of watching your videos BTW, thanks for doing them!
Hi, Mr. Clifford! Thanks for your videos. I am now studying Political Science and decided to take courses in Economics. Your videos really helped me a lot especially in macroeconomics to which Mankiw complicates everything hahaha!
By the way, YOU LOOK GOOD WITH YOUR BEARD!
I graduated from hs last year and I’m subscribed
Thank you. You rock!
@@Parsa_San damn you’re down horrendous
followed him a few years back in college and still love watching his videos
I'm going through college for a Bachelor of Science Business Management. I'll be watching these videos for years to come!
sir, you rock. sincerely a overworked college student that has a professor that uses too many big words. love ya man, thanks
Thank you for using Malone's Cones to make this a less monstrosity of a subject
Thank you, this video was really helpful. I got all the questions right
Dwight has a beat farm? Does that mean he's DJing now?
I love this content. I watched your sunk cost video right before I texted my ex....saved me.
The office reference is the only that could make this more interesting
The office series reference was gold
its Negative 5000 Dollars, option A
Its really helpful. Thanks Mr. Jacob
The beard is nice, actually I got the first and the last questions right thanks for ur work
Love the office example
Okay I got questions 2 & 3 correct. But in question 1, it says that Sally left her job where she mad $25,000 she used a space that she could have rented for $10,000 to run her new business. That would mean that she could have made a total of $35,000 with her job and the rent right? Sally made $30,000 in Accounting Profit from her new business ($155,000- $125,000). So if you take what she could have made which is $35,000 and take what she made from the business which is $30,000 then she missed out on an additional $5,000 right? which would mean her economic profit is -$5,000 right?
i got my 3rd one wrong i was just silly reading it an screwed
thats same like my answer
Yeah
seeing mr.clifford age is definitely interesting.....
I know. I'm so old now :(
This really helps us a lot
AED
You are amazing Sir
A. -5000 As aconomic profit
why is it - and not +?
@@barborabubenikova4280 As the
Total Revenue from her printing business ($155,000)
is less than her
Total Costs (Implicit+Explicit = $25,000 (lost job) + $10,000 (lost rent) + $125,000 (the explicit costs of running the business = $160,000).
Clearly, her economic profit is negative ($155,000 - $160,000 = - $5,000)
despite her accounting profit being positive ($155,000 - $125,000 = $30,000)
Beard is the way to go!
Thank You🙏❤
Hey, in regard to question 1, i wanted to ask about the $25000 cost being explicit cost. Is it not forgone salary? like is it not that we are supposed to include it in any of the calculations because its not contributing to the business
D. Because acc. Profit didn't count the implicit cost
if economic profit includes opportunity cost, why is it 0 at the end?
if accounting profit does not include implicit costs, why is it positive because of implicit costs at the end?
I'm confused....
Mr. Clifford, I must have misunderstood something - which is the implicit/opportunity cost one?
-10/4/2021 Monday
accounting profit includes only explicit costs, whereas economic profits includes both implicit and explicit costs. hence the later can be 0 even if the former is positive, assuming the amount of revenue earned is the same
Any cost is an opportunity cost.
Opportunity cost includes both explicit costs and implicit costs.
--------------------------------------------------------------------------------
Accounting Profit = Total Revenue - Explicit Costs
--------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------------
Economic Profit = Total Revenue - Opportunity Costs (Implicit Costs + Explicit Costs)
----------------------------------------------------------------------------------------------------------------------------------------
because even after calculating opportunity cost the balance is 0$; if you would have done that other thing(work for that job) the return you would've get from that would be equal to thing you did instead of it( say a business or something)
Ig that's what Mr. Clifford is saying here**
Thank you!
Thank you!! edit: awesome beard btw B)
Beard looks good !
C is my answer.
1 (A),2 (E)
Cool beard Mr Clifford :)
you rock the beard look very well!
What kinds of beats does Dwight grow on his beat farm? Is he eligible for an agricultural subsidy? 8)
Beard is 👍
if only real econ profs were as cool as you...
So in order to be able to pay an ice cream 🍦for himself he has to make and sell 1.7 hence if this was an enclosed economy no one involved would be able to pay an ice cream without making and selling more o.o something is wrong here how does this fit within the circular economy flow theory?
quition 1 =-5000$
quition 2 =E
quition 3= A
So, as she could have worked and gotten a good profit of 25,000 ( income ) but she chose to start up a business also not to forget the opportunity cost of losing the rent here 10,000. Futher, her allover revenue is 155,000 sounds great until all the costs getting deducted leaves 20,000 of income to her in accounting profit but she could have earned 25,000 thus she made an economic loss of -5,000
E. The acc profit would be positive
how?
I like the beard. Very distinguished.
So lets suppose the total revenue of a cobbler is 10 dollars and the explicit cost is 2 dollars, so according to accounting profit, it 8 dollars. Now suppose the cobbler wanted to become an actor but is not one. So if he would have invested his time in acting rather than in the former job, he would gained more than 10 dollars, lets say 500 dollars (idk if its a just price). So, the economic loss is -492 dollars. So everyone in the world may have wanted to become someone else or may have become someone else with higher income than their present job if they would have invested their time in that dream job. So everyone in the world is in economic loss cause of their implicit costs (leaving the person with the highest income in the world). This does not makes any sense! As to have zero economic profit , the cobbler has to earn 500 dollars. If he manages to do so, then he may want to become a business person earning more....and it would go on and on. So there would never be an economic profit since you may have invested your time in some other job with higher income and other job with more income......and so on. The implicit costs may never stop as human desire is infinite.
yeah true
Thank you?!
out of context but you look good with a beard 😎🔥
Whats the movie called?
It’s a show. The office.
Definitely keep the beard!
Keep the beard, its change. i like it!!!
Nice beard Mr.!
❤
beard looks so good
why is nobody talking about the milk on his shelf
(A) -5000$
Bitcoin is the feature investing in it now is the wesest thing to do now especially the current rise
Despite all the economic crisis this is the right time to start up an investment
Stocks are good but crypto is more profitable
I wanted to trade crypto but got confused by the fluctuations in price
That won't bother you if you trade with a professional like Mr Gregory
I heard that his strategies are really good
This does not mean I accept the video and comments but dont make picture of Prophets or make fun saying this as a Muslim
A
i love you
From Saudi Arabia
Me in an accounting class🤡
how tf is the milk not gone bad???/
boom
get rid of it!
What a beautiful boy
get rid of it
Grow a beard, looks good on you
Hey I think you should get rid of bread. You looked like a depressed. Although video is very helpful.
I thought this guy was arrested for doing stuff with female students
What...? Wrong person?
Lol get outta here