The sum of AVC and AFC equals:
a. total variable cost.
b. economic profit
c. accounting profit.
d. average total cost.
d
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Which of the following is likely to have the highest price elasticity of demand?
A. running shoes B. shoes C. Nike running shoes D. The price elasticity of demand will be the same for all of the answers listed.
In a perfectly competitive industry, i. entry by new firms shifts the market supply curve rightward. ii. exit by existing firms shifts the market supply curve leftward. iii. at all times existing firms make only zero economic profit
A) ii and iii B) ii only C) i and iii D) i and ii E) i, ii, and iii
A labor market is divided into two segments. All workers have the same qualifications and find jobs in either segment equally attractive. Initially, both segments are in competitive equilibrium. Then the development of employer prejudice reduces employment of minorities in one segment. In the long run, there will likely be a change in
a. wage rates and the composition of the work force in both segments b. neither wage rates nor the composition of the work force in either segments c. wage rates, but not the composition of the work force, in both segments d. the composition of the work force, but not wage rates, in both segments e. the wage rate, but not the composition of work force, in the discriminating segment only
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.