The three major sources of economic profit are
a. risk-bearing, innovation, and exercise of monopoly power.
b. risk-bearing, rent seeking, and discounting.
c. innovation, invention, and speculation.
d. exercise of market power, marginalization, and speculation.
a
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The graph that represents the amount of deadweight loss (measured on the vertical axis) as a function of the size of the tax (measured on the horizontal axis) looks like
a. a U. b. an upside-down U. c. a horizontal straight line. d. an upward-sloping curve.
The MRP of labor will shift to the right if
A. wages decrease. B. labor productivity increases. C. labor productivity decreases. D. wages increase.
Real GDP was $9,950 Billion in year 1 and $10,270 billion in Year 2. What was the approximate rate of economic growth from year 1 to year 2?
What will be an ideal response?
In the standard model of pure competition, a profit-maximizing firm will shut down in the short run if:
A. Marginal cost is greater than average revenue B. Average cost is greater than average revenue C. Average fixed cost is greater than average revenue D. Total revenue is less than total variable cost