If firms are exiting a market then
A) economic profits must be zero
B) economic profits must be greater than zero
C) economic profits must be less than zero
D) both economic and accounting profits must be greater than zero.
C
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A variable factor of production:
A. is fixed in the long run but variable in the short run. B. is variable in both the short run and the long run. C. plays no role in the law of diminishing marginal returns. D. is variable only in the short run.
How does one determine whether demand is elastic, inelastic, or unit elastic?
What will be an ideal response?
The domestic real interest rate (r) for a given country must be the same as the world real interest rate (rw) ________
A) if perfect capital mobility is assumed B) because with no barriers to capital flows, if rw > r domestic residents would just borrow abroad putting upward pressures on the domestic rate until both rates equal each other C) because with no barriers to capital flows, if rw < r domestic residents would only lend to foreigners putting downward pressures on the domestic rate until both rates equal each other D) all of the above E) none of the above
Four major areas of government expenditure in the United States include:
a. national defense, Social Security, healthcare, and interest payments. b. national defense, Social Security, healthcare, and environmental protection. c. national defense, Social Security, international affairs, and interest payments. d. national defense, Social Security, international affairs, and environmental protection.