When total revenue minus total economic cost is equal to zero, the firm is
a. earning above-average economic profit.
b. earning the normal profit rate.
c. losing too much money to stay in business.
d. earning abnormally low profits.
B
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John's utility from an additional dollar increases more when he has $1,000 than when he has $10,000. From this, we can conclude that John
A) is risk averse. B) is risk loving. C) is risk neutral. D) has a negative marginal utility of wealth.
The demand for labor is a derived demand. Employers hire workers until the
a. wage rate equals the average product of labor. b. wage rate equals the marginal revenue product of labor. c. last worker hired adds nothing to total output. d. average product of labor is zero.
Which of the following is a unique provision of NAFTA?
A) tariff elimination B) common currency C) environmental standards D) immigration oversights and policies
Which of the following will cause an increase in the steady-state growth rate of output per worker?
A) an increase in the saving rate B) a reduction in the population growth rate C) a reduction in the rate of depreciation D) a reduction in the saving rate E) none of the above