Based on the graph above, the firm is earning:
A. zero economic profits.
B. We can say nothing about this firm's profit or loss situation.
C. zero normal profits.
D. zero accounting profits.
Answer: A
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Firms in which of the following industries can earn an economic profit in the long run?
A) both monopolistic competition and monopoly B) perfect competition C) monopoly D) monopolistic competition E) monopolistic competition and perfect competition
When the interest rate is above the equilibrium interest rate, there is an excess ________ money and the interest rate will ________
A) demand for; rise B) demand for; fall C) supply of; fall D) supply of; rise
Economists and policy makers questioned the effectiveness of discretionary fiscal policy during the 1970s for all the following reasons except: a. the difficulty of estimating the natural rate of unemployment
b. the time lags involved in implementing fiscal policy. c. the existence of possible feedback effects of fiscal policy on aggregate supply. d. the distinction between current and permanent income. e. the possible feedback effects of fiscal policy on aggregate demand.
Which national income account should be examined to discover trends in the after-tax income that people have to save and spend?
a. Gross domestic product (GDP) b. Gross national product (GNP) c. Disposable personal income (DI) d. National income (NI)