At the short-run break-even price, the firm
A) is earning positive economic profits.
B) is earning negative economic profits.
C) is making a normal rate of return on its capital investment.
D) may be earning a positive or negative profit economic depending upon costs.
C
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Countries that have a large number of embassies, have memberships to international organizations, and participate in UN peace missions would be categorized under _____ globalization
a. cultural b. social c. political d. economic e. ethical
Yi and Avik are both economists. Yi thinks that taxing consumption, rather than income, would result in higher household saving because income that is saved would not be taxed. Avik does not think that household saving would respond much to a change in the tax laws. In this example, Yi and Avik
a. hold different normative views about the tax system. b. disagree about the validity of a positive theory. c. have a fundamental misunderstanding of the tax system. d. More than one of the above is correct.
If the exchange rate rises from .65 British pounds per dollar to .70 pounds per dollar, then compared to British goods, U.S. goods become
a. relatively more expensive for both British and U.S. residents. b. relatively more expensive for British residents and relatively less expensive for U.S. residents. c. relatively less expensive for British residents and relatively more expensive for U.S. residents. d. relatively less expensive for both British and U.S. residents.
You can either read a book, get something to eat, or take a nap. The opportunity cost of getting something to eat is _____
a. the cost of what you eat. b. the difference between the costs of the book and the food. c. the difference between the opportunity costs of reading and sleeping. d. the net benefit of sleeping. e. impossible to determine because the most preferred alternative is not known.