Zero economic profit means that the firm’s owners receive no compensation for their investment.
Answer the following statement true (T) or false (F)
False
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When banks involved in trading activities attempt to outguess markets, they are
A) forecasting. B) diversifying. C) speculating. D) engaging in riskless arbitrage.
Suppose we have normally-sloped IS and LM curves intersecting at point A. Then a monetary policy change shifts the LM curve to the right. Directly below point A we find a point on the new LM curve that shows us
A) where the new IS-LM equilibrium occurs. B) how much the interest rate must fall to raise planned expenditures to the new equilibrium income. C) how much the interest rate must fall to by itself raise the demand for money by as much as the money supply has decreased. D) how much income must rise to by itself raise the demand for money by as much as the money supply has increased. E) how much the interest rate must fall to by itself lower the demand for money by as much as the money supply has decreased.
By altering market incentives, the government tries to shift
A. Private costs to society. B. External costs to the producer. C. External costs to society. D. Social costs to the producer.
One of the economic effects of rising health care costs in the labor market is that:
A. Productivity in medical care decreases B. The demand for medical workers is decreasing C. Government is cutting health care coverage for workers D. Employers are using more temporary and part-time workers