Normal profit is defined as
a. accounting profit
b. economic profit
c. profit necessary to ensure that opportunity costs are covered
d. accounting profit minus economic profit
e. economic profit minus accounting profit
C
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Real investment tends to be
A) procyclical and less variable than real GDP. B) procyclical and more variable than real GDP. C) countercyclical and less variable than real GDP. D) countercyclical and more variable than real GDP.
Which of the following is the primary source of high earnings in a market economy?
A) a willingness to work hard even if you are not productive B) a willingness to engage in actions where you gain at the expense of others C) the ability to provide others with things that they value highly D) a willingness to exploit workers and consumers
Economics is an empirical science, which means that economists
A. do only laboratory experiments. B. look at evidence to see whether or not the model is applicable. C. test their models by utilizing unknown variables. D. refuse to test their models since the usefulness of a model is determined by whether it is logical or not.
The three legs of the organizational stool are reward systems, performance-evaluation systems, and
A. communication. B. market structure. C. decision rights. D. sunkcosts.