How do economists view profits?
A) The firm's profit equals the sum of all payments to the 5 factors of production.
B) Profits are an asset the business holds.
C) Profits are guaranteed as long as a firm operates ethically.
D) Profits are one of the costs paid to a factor of production.
D
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If the factor price equalization theorem is true then, eventually, U.S. wages will fall to the level found today in the least developed countries of the world
Indicate whether the statement is true or false
If the Japanese buy more Cadillacs, they __________ more yen and __________ more dollars in the foreign exchange market
A) supply; supply B) supply; demand C) demand; supply D) demand; demand
In order to see how much production has increased, we need to extract the effects of lower prices on nominal GDP.
Select whether the statement is true or false. A. True B. False
Which of the following would be most likely to receive high economic rent payments?
A) farmer B) professional baseball player C) factory worker D) school teacher