Economists proclaim that competitive firms make zero economic profit in the long run. This shows how
A) detached economists are from the real world.
B) unrealistic economic theory is.
C) firms cover all their cost, both monetary and non-monetary.
D) firms cover only monetary cost when economic profits are zero.
C
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Consider two economies: A and B that are completely similar, except their savings rate. The savings rate in economy A is greater than the savings rate in economy B. Which of the following statements is true?
A) Capital accumulation will be faster in economy B in comparison to economy A. B) Capital accumulation will be faster in economy A in comparison to economy B. C) Rate of capital accumulation will be the same in both economies. D) Growth rate in country B is likely to be higher than the growth rate of country A in the long-run.
Over time, countries grow in a fashion so that their production possibility frontiers always retain the same shape
Indicate whether the statement is true or false
If the cyclically adjusted budget shows a deficit of about $200 billion and the actual budget shows a deficit of about $250 billion over a several-year period, it can be concluded that there is a:
A. contractionary fiscal policy. B. cyclical deficit. C. progressive tax system. D. proportional tax system.
From the mid-1980s until late 2007, many world economies became less volatile because of
A. sound macroeconomic policies. B. several structural change that made the economies more flexible. C. good luck. D. All of these responses are correct. E. a through c only