Using the above figure, the perfectly competitive firm in the diagram will earn an economic profit if the market price is
A) P1.
B) P2.
C) P3.
D) P4.
D
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As the quantity of labor employed decreases, the value of marginal product diminishes
Indicate whether the statement is true or false
The calculation of potential output in the United States has been complicated recently by problems in
a. calculating unemployment. b. distinguishing real from nominal income. c. calculating a high-employment, or long-run average, level unemployment rate. d. measuring depreciation and, therefore, net national product.
Bans or quotas that limit the use of common resources are straightforward public-policy approaches to solving the problem of overuse if:
A. the community agrees to aid in its enforcement. B. the community affected participates in setting the punishments for breaking the policy. C. countries have the resources to enforce them. D. None of these statements is true.
Stocks and bonds
a. and checking accounts are all stores of value and commonly function as mediums of exchange. b. and checking accounts are all stores of value, but only stocks and bonds commonly function as mediums of exchange. c. and checking accounts are all stores of value, but only checking accounts commonly function as mediums of exchange. d. and checking accounts all commonly function as mediums of exchange, but only stocks and bonds are a store of value.