If a firm's total economic cost of producing 50,000 products is $5,000,000, and this output is sold for $5,000,000, we can conclude that the firm will earn an economic profit of:
a. $5,000,000
b. $0
c. $10,000,000
d. $50,000
Answer: b. $0
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Plants, trees, and soils naturally emit carbon dioxide (CO2 ) that enters the atmosphere
To form a benchmark level for this greenhouse gas, we can determine the amount of CO2 that would end up in the atmosphere if there were no human activity on the planet. Suppose naturally occurring CO2 emissions are 5 million tons per year, the social discount rate is 5%, and the stock dissipation rate is 2%. What is the eventual level of CO2 in the atmosphere if these natural emissions continue at this rate forever? A) 100 million tons B) 250 million tons C) 25 million tons D) We do not have enough information to answer this question.
Which of the following can be considered an income risk?
a. Recession causing loss of pay to employees working in a particular industry b. Fall in employee turnover affecting company profits c. Economic growth resulting in demand-pull inflation d. Stock market boom encouraging investment in risky assets
When the price of peaches changes, the demand curve for peaches
a. shifts because the price of peaches is measured on the vertical axis of the graph. b. shifts because the quantity demanded of peaches is measured on the horizontal axis of the graph. c. does not shift because the price of peaches is measured on the vertical axis of the graph. d. does not shift because the price of peaches is measured on the horizontal axis of the graph.
The tragedy of the commons arises from the:
A. combination of rivalry and nonexcludability. B. good being excludable. C. combination of rivalry and excludability. D. good being rival.