In a market economy, who or what determines who produces each good and how much is produced?
a. the government
b. lawyers
c. lotteries
d. prices
d
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The welfare loss of a tariff equals that of an import quota that leads to the same level of imports
Indicate whether the statement is true or false
If, as an entrepreneur, I am earning accounting profits of $60,000 per year and the opportunity cost of my time is $50,000
A) I am earning economic profits of $10,000. B) I am earning economic profits of $60,000. C) I am earning economic losses of $10,000. D) I should close my business.
The federal government began officially measuring poverty in the
A) 1860s. B) 1900s. C) 1930s. D) 1960s.
Reducing prices below cost in order to eliminate competitors (with the intention of later raising prices to recoup all losses) is
A) an empirical impossibility in a free society. B) called induced competition. C) called predatory price cutting. D) increasingly common in the American economy.