For resources with vertical supply curves, earnings comprise of both economic rent and transfer earnings
a. True
b. False
Indicate whether the statement is true or false
False
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When a firm experiences steadily declining long-run average total costs as it produces more output, it is known as a(n)
A) oligopoly. B) rent seeker. C) natural monopoly. D) monopolistic competitor.
If economic profits are zero, then the entrepreneur can go elsewhere and do better
Indicate whether the statement is true or false
Positive analysis:
A. examines if the outcome is desirable. B. involves the formulation and testing of hypotheses. C. involves value judgments concerning the desirability of alternative outcomes. D. weighs the fairness of a policy.
A surplus federal budget in the short run:
a. boosts domestic saving and stimulates aggregate demand. b. dampens aggregate demand but boosts domestic saving. c. reduces national saving and dampens aggregate demand. d. stimulates aggregate demand but reduces national saving.