Refer to above figure. If manufacturing labor were to increase to OmL2, how much value would the economy as a whole gain?
What will be an ideal response?
The triangle ABC.
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Answer the following statements true (T) or false (F)
1. The break-even point on a break-even chart is equivalent to the point where MR = MC on a cost/output graph. 2. It may be beneficial for a firm that is suffering a loss to continue to operate in the short run as long as it is recovering its fixed cost. 3. Any revenue over and above total cost is labeled economic profit. 4. Wages paid are an example of an explicit cost of doing business. 5. Marginal cost is equal to the increase in total cost per unit of input divided by marginal product. 6. Under perfectly competitive conditions, marginal revenue is equal to the price at which a good is sold. 7. Average total cost is equal to total cost divided by marginal product. 8. Normal profit is considered an opportunity cost of operating a business.
If we observe a decrease in the price of a good and an increase in the amount of the good bought and sold, this could be explained by
a. a decrease in the supply of the good. b. a decrease in the demand for the good. c. an increase in the demand for the good. d. an increase in the supply of the good.
Foreign direct investment that takes the form of a new startup facility is called:
a. acquisition FDI. b. greenfield FDI. c. intermediary FDI. d. brownfield FDI.
Socialism is an economic system characterized by:
A. private ownership of resources and market decision-making. B. government ownership of resources and centralized decision-making. C. cooperation, sharing, and little central government. D. a complex structure of rules and traditions that dictates decision-making.