If the market price is $50 per unit for a good produced in a perfectly competitive market and the firm's average total cost is $52, then the firm
A) incurs an economic loss of $2 per unit.
B) makes an economic profit of $2 per unit.
C) makes zero economic profit.
D) incurs a total economic loss of $52.
E) More information is needed to determine the firm's economic profit or loss per unit.
A
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According to the quantity theory, in the long run, an increase in the growth rate of ________ leads to an increase in the ________
A) real GDP; inflation rate B) the quantity of money; growth rate of real GDP C) the quantity of money; inflation rate D) real GDP; growth rate of velocity
In recent years, more than one quarter of federal government spending went to Social Security and income security programs
a. True b. False Indicate whether the statement is true or false
Refer to the above figure. Suppose the economy is at point B and the central bank adopts expansionary monetary policy. In the short run, this will result in
A. the economy moving towards point A. B. the economy staying at point B. C. the economy moving towards point C. D. an outcome that cannot be predicted, as not enough information is given.
The slope of an isocost line ________ and equals the negative of ________
A) increases as we move down the line; the ratio of input prices B) is constant; the ratio of input prices C) is constant; the ratio of the marginal products D) decreases as we move down the line; the ratio of the marginal products