Normal rate of return is
A. economic profit.
B. an explicit cost.
C. the amount that must be paid to obtain investment in a business.
D. accounting profit.
Answer: C
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Consumption goods
A) include spending on machines and buildings so that goods can be produced in the future. B) are goods that are used to make other goods. C) include goods such as DVDs that firms hold in inventory. D) are only the goods bought by households for immediate satisfaction.
The lag length in a VAR using the BIC proceeds as follows: Among a set of candidate values of p, the estimated lag length xxxis the value of p
A) For which the BIC exceeds the AIC B) That maximizes BIC(p) C) Cannot be determined here since a VAR is a system of equations, not a single one D) That minimizes BIC(p)
Macland can produce 210 sweaters or 30 airplanes. Microland can produce 150 sweaters or 10 airplanes. Since Macland can produce more than Microland,
a. Macland will benefit from trading, but Microland will not as it does not have an absolute advantage. b. neither country will benefit from trade because Macland has an absolute advantage in both goods. c. both Macland and Macroland will benefit as the opportunity costs are different. d. Microland will benefit, but Macroland will not because it has an absolute advantage in both goods.
In the long run firms will expand as long as there are more ________, and new firms will enter the industry as long as they earn ________.
A. diseconomies of scale; positive economic profits B. economies of scale; zero profits C. diseconomies of scale; zero profits D. economies of scale; positive economic profits