The expenditure method dictates that GDP is equal to C + I + G + (X M)
a. True
b. False
Indicate whether the statement is true or false
True
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Firms often use patent rights as a:
A) barrier to exit. B) barrier to entry. C) way to achieve perfect competition. D) none of the above
If, as an entrepreneur, I am earning accounting profits of $60,000 per year and the opportunity cost of my time is $50,000
A) I am earning economic profits of $10,000. B) I am earning economic profits of $60,000. C) I am earning economic losses of $10,000. D) I should close my business.
Maximizing profit means finding the maximum difference between:
A. TR and TC. B. MR and MC. C. price and ATC. D. ATC and MC.
Although he is very poor, Al plays the million-dollar lottery every day because he is certain that one day he will win. Al makes this calculation based upon
A) the frequency of past outcomes. B) subjective probability. C) knowledge of all possible outcomes. D) tossing a coin.