In the early 2000s, some argued that the Indian government impeded foreign investment with tariffs, investment caps, and tons of red tape. In terms of promoting or retarding economic growth, such policies:
A. increase growth because they keep people producing for the local market.
B. decrease growth because they slow the growth of capital.
C. increase growth because they stop exploitation by foreigners.
D. decrease growth because they cause inflation.
Answer: B
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In the short run, a perfectly competitive firm
A) must make an economic profit. B) must incur an economic loss. C) must make zero economic profit. D) might make an economic profit, zero economic profit, or incur an economic loss. E) None of the above answers is correct.
If labor and capital are perfect complements in production, short run supply curves are vertical.
Answer the following statement true (T) or false (F)
The break-even price for a perfectly competitive firm is the price that is equal to
A) AVC. B) ATC. C) MC. D) MR
The slope at any point on an indifference curve equals the absolute price at which a consumer is willing to substitute one good for the other
a. True b. False Indicate whether the statement is true or false