When a firm incurs negative economic profit, it should:
a. hire more laborers to make the business activity profitable.
b. transfer the resources from its current use to other alternative uses.
c. purchase additional raw materials to produce more output.
d. transfer additional resources from other alternative uses to the current activity.
e. continue to operate with the same resources.
b
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Suppose the current account of a country is in balance and the official settlements account equals 0. A new transaction occurs so that the current account is now in surplus, but the official settlements account does not change
From this we know that A) the balance of trade is now in surplus. B) the government is running a budget deficit. C) the capital and financial account is now in deficit. D) the government must make official reserve transactions.
The perspective of ________ holds that as a company gains experience, resources, and confidence, it progressively increases its scope of countries to which it exports.
A) serendipity B) export management C) the born-global theory D) incremental internationalization
The figure below illustrates the impact of an export subsidy as imposed by a large country. No imports are permitted.
What is the net impact on the producer surplus of the export subsidy provided by the domestic government?
A. The producer surplus increases by area (a + b + c). B. The producer surplus increases by area (a + b + c + d). C. The producer surplus falls by area (a + b). D. The producer surplus falls by area (a + b + c + e + f + g + h).
The key to assessing whether fiscal policy is expansionary is to observe the change in the cyclically adjusted budget as a percentage of GDP.
Answer the following statement true (T) or false (F)