The ability of price-taker firms to freely expand or contract their businesses and to enter or exit the market means that
a. prices will always be high enough to generate positive economic profit.
b. resources that would be more valuable elsewhere will be trapped, unproductively, in a particular industry.
c. resource owners cannot move their resources to other areas where they would be more highly valued.
d. resources that would be more valuable elsewhere will not be trapped, unproductively, in a particular industry.
D
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The table gives data on the production and prices in a small economy. Use 2012 as the base period
a. What does nominal GDP equal in 2012? b. What does real GDP equal in 2012? c. What does nominal GDP equal in 2013? d. Using the chained-price method, what does real GDP equal in 2013?
Which of the following is the formula for calculating compound interest?
a. Compound interest = Future Value – Present Value b. Compound interest = Future Value + Present Value c. Compound interest = Future Value – Principal d. Compound interest = Present Value + Principal
Suppose that the government collected taxes in the following fashion: people who earn less than $50,000 pay 25 percent in taxes, people who earn between $50,000 and $100,000 pay 35 percent in taxes, people who earn between $100,000 and $200,000 pay 30 percent in taxes, and people who earn more than $200,000 pay 28 percent in taxes. Which of the following statements is correct?
a. The tax system is proportional for income levels less than $50,000 and regressive for income levels above $50,000. b. The tax system is regressive for income levels less than $100,000 and progressive for income levels above $100,000. c. The tax system is progressive for income levels less than $100,000 and regressive for income levels above $100,000. d. The tax system is progressive for income levels less than $50,000 and proportional for income levels above $100,000.
A risk lover enjoys the gamble and the thrill of taking the risk enough that it adds ___________ to their income to take the gamble
Fill in the blank(s) with the appropriate word(s).