When an economist states that a firm is earning zero economic profit, this statement implies that the firm
a. will be forced out of business unless market conditions change.
b. is doing as well as it could in any other line of business.
c. is earning a zero rate of return on its assets.
d. could earn a higher rate of return in other industries.
B
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The intuition behind the budget constraint is that
A) more options are preferred to less. B) money is the root of all happiness. C) information is power. D) scarcity is avoidable with prosperity.
A balance-of-payments surplus for the United States can be corrected by
A. Increasing quotas on foreign goods. B. Increasing U.S. taxes. C. Subsidizing U.S. exports. D. Reducing tariffs on foreign goods.
Refer to the table above. If there is no statistical discrepancy, the capital and financial account balance equals
A) -$200 billion.
B) +$200 billion.
C) -$220 billion.
D) +$220 billion.
E) +$20 billion.
In a progressive tax structure,
A. the marginal tax rate exceeds the average tax rate. B. vertical equity exists. C. the average tax rate rises as income falls. D. all the choices.