When a firm has economic profits equal to zero
A. the firm's accounting profits are also zero.
B. the firm should shut down.
C. the firm is not earning a normal rate of return on investment.
D. the firm is earning a normal rate of return on investment.
Answer: D
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Modern statistical methods have created a new branch of economics called
a. microeconomics b. macroeconomics c. econometrics d. abstract economics e. positive economics
Which of the following coordinates the choices of buyers and sellers, bringing quantity demanded and quantity supplied into balance?
a. taxes and subsidies b. consumer demand c. government mandates d. the market price
If a vintner has a comparative advantage in producing wine,
A. he can produce wine at a lower opportunity cost than other vintners. B. he also has an absolute advantage in producing wine. C. wine is the only product he can produce. D. he can produce more wine using the same resources than other vintners.
Which is the most accurate statement?
A. Workfare has been a great success in moving millions of people off the welfare rolls into minimum wage jobs. B. Most people on welfare are now limited to receiving benefits for no more than 5 years during their entire adult lives. C. The Personal Responsibility and Work Opportunity Act of 1996 provides jobs or training for every adult who desires to leave welfare. D. Until the passage of welfare legislation in 1996, the welfare rolls had been rising for the previous 6 years.