The profits of business firms, defined as the difference between total revenue and total cost, are not zero because
A) capitalists have a near monopoly over the means of production.
B) information is a scarce good.
C) the government defines some opportunity costs as revenue in order to increase tax receipts.
D) there would be no investment if firms did not earn positive profits.
B
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In the above table, if the market is perfectly competitive and unregulated, the equilibrium output will be
A) 1,000 units. B) 2,000 units. C) 3,000 units. D) 4,000 units.
Between 1930 and 1933, many banks in the U.S. failed because: a. the FDIC moved too slowly to prevent the bank failures
b. most bankers were either corrupt or incompetent. c. of excessive regulation by the federal government. d. people shifted their funds to take advantage of rising stock market prices. e. people lost confidence in them.
When unplanned inventory changes are positive, GDP is current at its equilibrium level
a. True b. False
According to the following table, what is the price index for 2021 if 2019 is the base year?
a. 1.47
b. 1.75
c. 147
d. 175