Normal profit is zero when a firm's revenues just cover its economic cost.
Answer the following statement true (T) or false (F)
False
A firm that is making zero economic profits is covering all of its costs, including its opportunity costs-in other words, a provision for normal profit.
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________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium
A) Producer atrophy B) Deadweight loss C) Economic shortage D) Marginal cost
Exchange rates determined by the laws of supply and demand are called: a. equilibrium exchange rates. b. fixed exchange rates
c. dirty exchange rates. d. floating exchange rates.
Which of the following is most likely a topic of discussion in economics?
a. Families must decide whether to spend their money on a new car or a fancy vacation. b. Nations must choose whether to put more of the budget into police and fire protection or into the school system. c. Towns must choose whether to put more of the budget into police and fire protection or into national defense. d. Nations must decide whether to devote more funds to national defense or to police and fire protection.
Which of the following is a true statement?
a. GDP per capita does not account for the difference in the cost of living among nations. b. The LDC classification is of the questionable accuracy. c. All of the answers are correct. d. GDP per capita is affected by exchange rate changes. e. GDP per capita ignores the degree of income distribution.