When a firm is at its short-run break-even point
A) economic profits are positive.
B) economic profits equal zero and the firm should shut down.
C) economic profits equal zero and the firm is earning a nominal rate of return on investment.
D) economic profits are negative but the firm should continue to produce because accounting profits are positive.
Answer: C
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The above table shows some national income accounting data for a nation. In this nation, gross domestic product is equal to ________ billion
A) $2,000 B) $2,300 C) $2,500 D) $2,800
A key difficulty facing insurance companies is that people know more about their health than do insurance companies, and that those people who are seriously ill are the most likely to want to obtain health insurance
What is this phenomenon called? A) asymmetric information B) moral hazard C) economic irrationality D) adverse selection
Efficiency wages contribute to
a. frictional unemployment and the natural rate of unemployment. b. frictional unemployment but not the natural rate of unemployment. c. structural unemployment and the natural rate of unemployment. d. structural unemployment but not the natural rate of unemployment.
A purely competitive seller should produce (rather than shut down) in the short run:
A. only if total revenue exceeds total cost. B. only if total cost exceeds total revenue. C. if total revenue exceeds total cost or if total cost exceeds total revenue by some amount less than total fixed cost. D. if total cost exceeds total revenue by some amount greater than total fixed cost.