The difference between what a productive resource receives as payment for its use in production and the cost of bringing that resource to the market is called profit
Indicate whether the statement is true or false
F
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Why do economists refer to the pricing strategies of oligopoly firms as a prisoner's dilemma game?
What will be an ideal response?
Assuming the market is in equilibrium in the graph shown with demand D and supply S1, total surplus is:
A. greater than total surplus when market is in equilibrium at D and S2.
B. less than total surplus when market is in equilibrium at D and S2.
C. the same as total surplus when market is in equilibrium at D and S2.
D. zero.
How does an increase in the savings rate affect the multiplier in an economy, if at all?
a) The multiplier would turn from positive to negative. b) The multiplier would stay the same. c) The multiplier would increase. d) The multiplier would decrease.
The own price elasticity of demand for apples is ?1.5. If the price of apples falls by 6 percent, what will happen to the quantity of apples demanded?
A. It will fall 4 percent. B. It will increase 4 percent. C. It will increase 9 percent. D. It will fall 6 percent.