Value added refers to:
A. any increase in GDP that has been adjusted for adverse environmental effects.
B. the excess of gross investment over net investment.
C. the difference between the value of a firm's output and the value of the inputs it has
purchased from others.
D. the portion of any increase in GDP that is caused by inflation as opposed to an increase in
real output.
C. the difference between the value of a firm's output and the value of the inputs it has purchased from others.
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What type of profit can a firm in monopolistic competition earn in the long run? Explain your answer
What will be an ideal response?
For a nation to engage in international trade on the basis of comparative advantage, it should
A. purchase resources from other nations until it acquires a comparative advantage in at least one product. B. produce only those goods in which it has an absolute advantage over other nations. C. specialize in producing those products that have the lowest opportunity cost per unit compared to other nations, then trade some if its output. D. specialize in the production of those goods that have the highest opportunity cost, then trade the excess output.
The cost of an extra unit of coal in Australia in terms of oil given up is
A. 100.
B. 20.
C. 5.
D. 1/5.
Which is a barrier to entry in an industry?
A. Allocative efficiency B. Economic profits C. Profit maximization D. Economies of scale