When economic profits in an industry are zero and implicit costs are positive:
a. accounting profits will be greater than zero
b. resources will be attracted to the industry.
c. resources will not tend to either enter or leave the industry, other things equal.
d. both (a) and (c) will be true.
d
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A firm's marginal revenue product curve is downward sloping, which means the derived demand curve for an input is downward sloping
a. True b. False
Savings is considered the portion of income:
A. that is not immediately spent on consumption of goods and services. B. that is spent on productive inputs, such as factories, machinery, and inventories. C. that is placed in an individual's savings account. D. in any interest-bearing account.
In designing a tax system, policymakers have two objectives that are often conflicting. They are
a. maximizing revenue and minimizing costs to taxpayers. b. efficiency and minimizing costs to taxpayers. c. efficiency and equity. d. maximizing revenue and reducing the national debt.
If one tracks the prices of critical metals, like lead, zing, and copper, one sees that
A. they have risen more slowly than the general rate of inflation. B. they have risen about as rapidly as the general rate of inflation. C. the prices have fallen, indicating that consumers have found other alternatives. D. the prices have fluctuated too wildly to conclude anything.