If a firm makes an economic profit, it is making at least a normal rate of return.
Answer the following statement true (T) or false (F)
True
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The supply-side effects show that a tax cut on labor income ________ employment and ________ potential GDP
A) increases; increases B) increases; does not change C) increases; decreases D) decreases; increases E) decreases; decreases
If you can produce more of something than others with the same resources, you have
A) a free-market economy. B) an absolute advantage. C) an efficient production system. D) a comparative advantage.
States with no-fault automobile insurance have lower crash fatality rates than states with ordinary automobile insurance
Indicate whether the statement is true or false
Suppose the world price of automobiles is $20,000 and automobile manufacturers in Country A use $10,000 worth of imported inputs and no domestic inputs. What is the effective rate of protection for the automobile industry in Country A, if there is a tariff of 25 percent on imported automobiles and a tariff of 50 percent on imported inputs used in this industry?
What will be an ideal response?