Profits and losses play an important role in helping
a. to signal to government which businesses are suffering losses so that they can be subsidized.
b. consumers decide which products they value the most by looking at each firm's profit.
c. to allocate scarce resources in a manner that maximizes the value created to society.
d. ensure that the total profits in the economy exactly equal the total losses.
C
You might also like to view...
Refer to Figure 24-3. Which of the points in the above graph are possible short-run equilibria?
A) A and B B) A and C C) A and D D) A, B, C, and D
At all points below the current LM curve,
A) the supply of output exceeds output demand. B) the supply of output falls short of output demand. C) the supply of money falls short of money demand. D) the supply of money exceeds money demand.
Under U.S. antitrust law, a consent decree allows a firm to
a. admit to an antitrust violation without penalty b. admit to an antitrust violation without a lawsuit c. challenge the government's accusation in court d. cease the alleged wrongdoing without admitting guilt e. cease the alleged wrongdoing only by admitting guilt
The evidence on how minimum wage laws affect the real world:
A. is mixed. B. shows clearly that such price floors cause unemployment. C. shows clearly that there is simply a transfer of surplus from employer to worker. D. None of these statements is true.