At the optimal production point, the firm in Figure 7.3 will:
A. make a zero economic profit.
B. suffer a loss.
C. make a positive economic profit.
D. break even.
Answer: C
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Which of the following does competition provide in a market economy?
a. centralized decision-making b. planning committees setting output quotas c. a regulator for the free market system d. government price controls
Describe intellectual property rights. What agreements have been reached regarding their protection? What are the benefits and the costs of protecting intellectual property rights?
What will be an ideal response?
Giving states control of nonpoint source pollution
a. has no advantages b. can be problematic because states generally have inadequate data to assess the problem c. is advantageous because it results in greater consistency of control d. was not the original intent of the 1987 legislation
If households pay $1,000 in interest payments and receive $1,200 in interest, wages equal $8,000, rental receipts on land are $200, total business profits before taxes are $2,200, depreciation is $1,750, and indirect business taxes are $1,000, then gross domestic income is
A. $13,150. B. $15,350. C. $13,350. D. $11,400.