If firms in a perfectly competitive industry are making zero economic profit, then
A) some of those firms will leave the industry, because firms cannot persistently go without making economic profit.
B) new firms will enter the industry, because the new entrants would be ensured of doing as well as in their best foregone alternative.
C) there is no incentive for either entry or exit.
D) some of the firms will temporarily shut down.
C
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The Lorenz curve is best used to measure international competitiveness
a. True b. False Indicate whether the statement is true or false
Investment in both physical and human capital enhances economic growth because it:
a. increases consumption during the current period. b. makes it possible for individuals to produce more goods and services per hour worked. c. encourages firms to expand output by employing more low-productivity workers. d. encourages workers to unionize and, thereby, fight for higher wages.
Ceteris paribus means
A. other variables are held constant. B. perhaps. C. only if everything works just right. D. almost certainly.
Refer to the above table. How long would it take for a country to triple its GDP if the GDP grew at a 20 percent rate?
A. 2 years B. 10 years C. 4 years D. 6 years