Can a perfectly competitive firm make an economic profit in the short run? Can it incur an economic loss?
What will be an ideal response?
In the short run, a perfectly competitive firm can make an economic profit or incur an economic loss. Indeed, the firm also can make a normal profit in the short run. Basically, any profit or loss outcome is possible in the short run.
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Interest earned on foreign holdings of U.S. federal, state and local government debt are recorded in the
A) services account. B) merchandise account. C) transfers account. D) capital account.
Assume Jean-Claude purchased real estate for $500,000 using $50,000 of which is his own money and $450,000 of which he borrowed at an 8 percent interest rate. If the value increased by 10 percent in one year and he sold the property, what was Joe’s rate of return on his investment? If the value of the property had declined by 2 percent, what would have been the rate of return on his investment?
What will be an ideal response?
The Environmental Kuznets Curve
a. models a theorized relationship between environmental pollution and population b. is positively sloped and linear c. illustrates the relationship between economic growth and environmental degradation d. graphs as a U-shaped curve
Which type of unemployment leads to a natural rate of unemployment above zero?
A. Frictional unemployment B. Cyclical unemployment C. The natural rate of unemployment is always zero. D. Unemployment of government workers