Why is the total profit curve shaped like a hill?
If a firm produces nothing, it certainly earns no profit. At the other extreme, a firm can produce so much output that it swamps the market, forcing price down so low that it loses money. Only at intermediate levels of output can the company earn a positive profit. Consequently, the total profit curve will rise from zero levels at a very small output to positive levels at intermediate outputs; finally, it will fall to negative levels when output gets too large.
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The United States is a creditor nation
Indicate whether the statement is true or false
Developing countries often justify imposition of tariffs because:
a. it creates a burden on government budget. b. it is easy to collect direct taxes from people in the developing countries. c. a large number of people in the developing countries earn a taxable income. d. developing countries find income taxes difficult to levy and collect. e. the volume of imports of these countries is considerably low.
The equation of exchange states:
a. MV = PQ. b. MP = V/Q. c. V = M/PQ. d. MP = VQ.
Bequest saving is saving:
A. for protection against unexpected setbacks, such as the loss of a job or a medical emergency. B. to meet long-term objectives, such as retirement, college attendance, or the purchase of a home. C. for the purpose of leaving an inheritance. D. done in anticipation of sales or bargain in the future.