What is a normal profit? Is it part of the firm's opportunity costs, total revenue, or neither?
What will be an ideal response?
The normal profit is the return to entrepreneurship. It is part of the firm's opportunity costs.
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The real GDP per capita allows economic comparison between countries
Indicate whether the statement is true or false
Which of the following is correct about marginal and average products?
A) When the marginal product is increasing, the average product must be increasing. B) When the marginal product exceeds the average product, the average product must be increasing. C) When the average product is increasing, the marginal product must be decreasing. D) When the marginal product is decreasing, the average product must be decreasing. E) When the marginal product is increasing, the average product must be decreasing.
There is no evidence that minority employment has risen as a result of affirmative action initiatives
Indicate whether the statement is true or false
Assume that the economy grows by 3 percent, total factor productivity grows by 2 percent, and the labor force grows at 2 percent. If labor contributes 40 percent to real GDP, then the stock of capital must have risen by 0.33 percent
a. True b. False Indicate whether the statement is true or false