Under a marginal cost pricing rule, a natural monopoly
A) makes a reasonable profit.
B) makes an economic profit.
C) earns accounting profits, but breaks even in economic terms.
D) incurs an economic loss.
E) makes a normal profit, but it cannot be determined whether or not it makes an accounting profit.
D
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The labor force is the sum of
A) employed workers and individuals not looking for work. B) unemployed workers and the working-age population. C) employed workers and discouraged workers. D) employed workers and unemployed workers.
If a market is contestable, the market will be characterized by
a. minimum-cost production methods and a competitive (normal) profit rate. b. high barriers to entry and a small number of suppliers. c. prices in excess of production costs and mergers leading to monopoly. d. a large number of suppliers offering a homogeneous product.
In the balance of payments, "net errors and omissions":
a. Must be zero. b. Is like a balancing item. It makes the balance of payments equal zero. c. Is not a part of the balance of payments because governments don't make errors, and they don't omit transactions from the balance of payments. d. None of the above.
Two components of labor are:
A) residential location and education. B) natural ability and human capital. C) money and financial wealth. D) ingenuity and job-specific machinery.