Economic profits are maximized at the point at which
A. accounting profits are equal to zero.
B. marginal revenues equal marginal costs.
C. accounting profit exceeds economic profit.
D. total revenues are greater than total costs.
Answer: B
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Refer to Figure 2-16. In the circular flow diagram, who are economic agents A and who are economic agents B?
A) A= firms; B = product markets B) A = firms; B = households C) A = households; B = firms D) A = households; B = factor markets
Monetarists and Keynesians agree that expectations are
a. backwards-looking. b. rational. c. unstable. d. forwards-looking.
If a worker becomes unemployed because of an increase in the minimum wage, that worker is:
What will be an ideal response?
Which of the following is true about advertising?
A. It is a form of nonprice competition. B. It is an efficient form of competition. C. It is less important than price competition in oligopolistic and monopolistic competition. D. It is a major component of competition in perfectly competitive markets.