Firms that are earning zero economic profits are
A. shutting down in the short run.
B. breaking even.
C. earning less than a normal rate of return.
D. shutting down in the long run.
Answer: B
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Which point or points on the above figure illustrate a short-run equilibrium?
A) Point A B) Point C C) Point B D) Points A and C
A stand of redwood trees is not an example of a factor of production but the harvested and processed redwood is a factor of production
Indicate whether the statement is true or false
Which of the following is true of the consumption function? a. A decrease in flat tax results in an upward shift of the consumption function
b. An increase in interest rates results in an upward rotation of the consumption function. c. An increase in the expected future income results in an upward rotation of the consumption function. d. A decrease in the marginal propensity to save results in a downward shift of the consumption function.
In the open-economy macroeconomic model, the real exchange rate does not affect net capital outflow
a. True b. False Indicate whether the statement is true or false