In economic analysis, any amount of profit earned above zero is considered "above normal" because
A) normally firms are supposed to earn zero profit.
B) this would indicate that the firm's revenue exceeded both its accounting and opportunity cost.
C) this would indicate that the firm was at least earning a profit equal to its opportunity cost.
D) this would indicate that the firm's revenue exceeded its accounting cost.
B
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Why is the equilibrium in a trust game socially inefficient?
What will be an ideal response?
The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods, effectively acting as a quota of zero imports when stimulus money was being spent
The "Buy American" provision would ________ consumer surplus and ________ producer surplus for industries that produced protected products in the United States. A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease
Governments have often intervened in financial markets because they believed that
a. interest rates were too low b. competition among banks leads to poor services c. bank lending was favoring lucrative projects at the expense of crucial development needs d. too much foreign money was entering their financial systems e. all of the above
Pollution charges will be efficient if
a. the charge is just equal to the cost borne by others from the pollution. b. the charge is greater than the cost borne by others from the pollution. c. the charge is less than the cost borne by others from the pollution. d. none of the above.