What statement below best describes how the environment is incorporated into the standard circular flow model?
A) The long-term availability of natural resources is considered
B) The pollution generated by firms and households is considered
C) The input of solar energy is considered
D) Natural resources are considered as inputs into the production process
E) The build-up of waste heat is considered
Ans: D) Natural resources are considered as inputs into the production process
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To carry out an optimization analysis:
A) only direct costs incurred in a project are to be estimated. B) all costs are required to be converted to a same unit of measurement. C) only indirect costs incurred in a project are to be estimated. D) different types of costs are measured in different units.
How does a firm in monopolistic competition determine its price and quantity? What type of profit can it earn in the short run and the long run?
What will be an ideal response?
A policy in which a government actively picks industries to support as a base for economic development is known as
A. industrial policy. B. first-choice policy. C. social policy. D. preferential policy.
In perfect competition
a. the demand curve facing the firm is a horizontal line at the market price b. marginal revenue equals total revenue c. total revenue always exceeds variable cost d. price always exceeds average total cost e. marginal cost always equals average cost