The abnormal net income model
A) assumes that economic profits cannot be earned in the short run.
B) assumes that economic profits cannot be earned in the long run.
C) employs economic profit in its valuation of a firm.
D) none of these choices.
C
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We do not have reliable information on the time lags between expansionary fiscal and monetary policy actions and their effect on production and prices because
A) Congress has reduced the funds available to the Bureau of Economic Analysis. B) economists believe any discretionary policy would only make matters worse. C) economists have only recently discovered the importance of this problem. D) the length of the lags will depend in large part on how long they are thought to be.
Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number of people in the civilian labor force is:
a. 30. b. 60. c. 85. d. 90. e. 70.
Why did President Roosevelt declare a bank holiday in March 1933?
Suppose Dave drives more recklessly when he has car insurance than when he does not have car insurance. This is an example of the moral hazard problem associated with insurance
a. True b. False Indicate whether the statement is true or false