At the short-run break-even point, the perfectly competitive firm is
A) earning positive economic profits.
B) earning zero economic profits.
C) earning negative economic profits.
D) just covering its total variable costs.
B
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If government increases spending and wants to maintain a balanced budget, it should
A) increase taxes by an amount equal to the increase in spending multiplied by the tax multiplier. B) decrease taxes by an equal amount. C) increase taxes by an equal amount. D) decrease taxes by an amount equal to the increase in spending multiplied by the tax multiplier.
A firm's trademark is protected from misuse if it is registered with the
A) U.S.D.A. B) U.S. Patent and Trademark Office. C) U.S. Supreme Court. D) F.C.C.
Other things being equal, the behavior of a monopolist differs from that of a competitive industry in that
A) the monopolist does not attempt to maximize economic profit. B) the monopolist hires more labor. C) the monopolist restricts output and hires less labor. D) the monopolist must consider fixed costs in deciding the optimal level of output to produce in the short run.
If the unemployment rate rises because the number of people not working but searching for work rises, economists would attribute this to the
A. discouraged worker effect. B. fallacy of composition. C. encouraged worker effect. D. none of the options are correct.