The figure above shows the costs for a grower in the perfectly competitive turnip market. If the price is $1,200 for a ton of turnips, the firm is
A) making an economic profit.
B) making zero economic profit.
C) incurring an economic loss.
D) More information is needed to determine if the firm is making a positive economic profit, zero economic profit, or incurring an economic loss.
B
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A tariff is a
A. tax. B. price ceiling. C. subsidy. D. quantity limit.
Despite evidence that companies will find it more profitable to use a commission system of compensation rather than a salary system, many companies continue to pay their workers salaries
Which of the following is one reason why firms choose a salary system? A) Firms that have salary systems do not have to use compensating differentials to attract employees to do hazardous jobs. B) Many workers dislike risk and prefer to be paid a salary rather than to be paid by commission. C) Firms often use salary systems to overcome their principal-agent problems. D) Most business owners and managers are not trained economists; therefore, they are unaware of the research that shows a commission system is more profitable than a salary system.
Specialization and trade are closely linked to
a. absolute advantage. b. comparative advantage. c. gains to some traders that exactly offset losses to other traders. d. shrinkage of the economic pie.
If foreign input prices increase and the United States is a purchaser of those inputs, then the U.S
A) AD curve will shift leftward and U.S. prices will fall. B) AD curve will shift rightward and U.S. prices will rise. C) SRAS curve will shift leftward and U.S. prices will rise. D) SRAS curve will shift rightward and U.S. prices will fall