In the long run, a firm in perfect completion will earn which of the following?
a. Economic loss
b. Economic profit
c. Zero economic profit
d. Either economic loss or profit
c. Zero economic profit
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There is evidence that income per worker is converging in
A) the richest countries and the poorest countries. B) the richest countries, but not the poorest countries. C) the poorest countries, but not the richest countries. D) neither the richest nor the poorest countries.
The following does not represent a threat to internal validity of randomized controlled experiments:
A) attrition. B) failure to follow the treatment protocol. C) experimental effects. D) a large sample size.
(I) Governments that respect property rights and freedom of exchange while following monetary (and fiscal) policies consistent with relative price stability, establish the foundation for economic growth. (II) Governments have often diminished the economic prospects of a nation by levying high taxes, instituting price controls, and following inflationary monetary policies
a. I is true; II is false. b. I is false; II is true. c. Both I and II are true. d. Both I and II are false.
The Earned Income Tax Credit (EITC) is a tax provision that allows poor working families to receive income tax refunds greater than the taxes they paid during the year. Therefore, the EITC works much like a