Describe the scope of economic profit in the long run for a perfectly competitive firm
What will be an ideal response?
For a perfectly competitive firm there is zero economic profit in the long run.
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A corrective tax is intended to: a. cover the costs of negative externalities
b. increase the private benefits of consumption. c. increase the deadweight loss caused by negative externalities. d. increase the deadweight loss caused by positive externalities.
Which of the following groups is under-represented in the poverty statistics relative to their overall U.S. population?
A. Whites (non-Hispanic) B. Asians C. Blacks (non-Hispanic) D. Hispanics
What are the two main components of business cycle theories?
A. A model of how equilibrium is reached and a description of the government's role in the economy B. A description of shocks and a model of how the economy responds to them C. A model of how people decide to spend and a description of the government's role in the economy D. A description of shocks and a description of the government's role in the economy
In the United States, most people's wealth comes from
A. transfer payments. B. saving. C. inheritance. D. profits.