If a firm is earning zero economic profit, then:
A. the firm's revenues are sufficient to pay its explicit costs, but not its implicit costs.
B. the owner will not be able to pay himself or herself a salary.
C. the firm's accounting profit is equal to the firm's implicit costs.
D. the firm will shut down in the long run, but will continue to operate in the short run.
Answer: C
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If the FDIC decides that a bank is too big to fail, it will use the ________ method, effectively ensuring that ________ depositors will suffer losses
A) payoff; large B) payoff; no C) purchase and assumption; large D) purchase and assumption; no
Since World War II, GATT has been responsible for reducing the average tariff among member countries from about
a. 40 percent to about 5 percent. b. 40 percent to about 20 percent. c. 80 percent to about 20 percent. d. 20 percent to about 10 percent.
Compute how much each of the following items is worth in terms of today's dollars using 177 as the price index for today
a. In 1926, the CPI was 17.7 and the price of a movie ticket was $0.25. b. In 1932, the CPI was 13.1 and a cook earned $15.00 a week. c. In 1943, the CPI was 17.4 and a gallon of gas cost $0.19.
Private benefits are those benefits that accrue:
A. without compensation to someone other than the person who caused them. B. indirectly to the decision maker of a market exchange. C. directly to the decision maker of a market exchange. D. to third parties without direct government intervention.