Net foreign factor income is the:
A. income earned from the domestic economy by foreign factors.
B. difference between the value of a country's exports and imports.
C. income earned abroad by domestic factors.
D. difference between the income earned abroad by domestic factors and the income earned domestically by foreign factors.
Answer: D
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The market for lettuce does exhibit the two primary characteristics that define perfectly competitive markets.
Indicate whether the statement is true or false.
Regarding income distribution and the distribution of wealth
A) wealth is a stock concept and income a flow concept. B) a stock is evaluated at a given moment in time; a flow is evaluated during a period of time. C) income, a flow, can be viewed as a return on wealth. D) All of the above are correct.
A market transaction causes an externality if someone
a. directly involved in the transaction receives uncompensated benefits or costs from it. b. not directly involved in the transaction receives uncompensated benefits or costs from it. c. directly involved in the transaction seeks legal assistance to ensure that the transaction is carried out. d. not directly involved in the transaction interferes in it by imposing regulations or product standards.
Regardless of the cost structure of firms in a competitive market, in the long run
a. firms will experience rising demand for their products. b. the marginal firm will earn zero economic profit. c. firms will experience a less competitive market environment. d. exit and entry is likely to lead to a horizontal long-run supply curve.