If a perfectly competitive firm made an economic profit in the short run, but not in the long run, it must be true that
a. prices for inputs increased
b. demand declined
c. new firms entered, supply increased, and price fell
d. accounting profit exceeds economic profit
e. labor costs are increasing
C
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Refer to Table 2.3. What can be observed about the given resources?
A) Capital is fixed. B) Capital is variable. C) Capital and labor are both fixed. D) Labor is fixed.
Money performs all of the following functions EXCEPT serving as a
i. medium of exchange. ii. unit of account. iii. barter mechanism. A) iii only B) ii only C) i only D) ii and iii E) i and ii
Human capital refers to the
A) accumulated financial capital people have acquired. B) accumulated skill and knowledge of human beings. C) accumulation of money by human beings. D) accumulation of money and equipment used by human beings. E) accumulated equipment used by human beings.
According to your textbook, a scientist of any kind
A) works with some assumptions and biases. B) never confront tradeoffs. C) offer only the best evidence to support his or her theory. D) be the best candidate for the Nobel Prize in Economics.