The average return for supplying entrepreneurial ability is the entrepreneur's
A) accounting profit.
B) normal profit.
C) explicit profit.
D) economic profit.
B
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Labor productivity is calculated as
A) (real GDP ÷ aggregate hours). B) (real GDP ÷ aggregate hours × number of workers). C) (real GDP ÷ number of workers × ratio of capital per worker). D) (real GDP ÷ technology level). E) (real GDP ÷ aggregate hours × number of workers) × 100.
Fundamentally, economics is concerned with:
a. how scarce resources are allocated to satisfy limited wants. b. how limited resources are allocated to satisfy scarce wants. c. how limited resources are allocated to satisfy unlimited wants. d. how limited wants can be used to satisfy limited resources.
When recessions occur, advocates of small government should recommend
a. reductions in the number of federal employees. b. reductions in transfer payments. c. reductions in taxes. d. increases in transfer payments and government spending.
Opening an industry to international competition tends to:
A. increase the incidence of lazy monopolists. B. force lazy monopolists to increase efficiency. C. increase X-inefficiency. D. raise a monopolist's profit as the price is driven up.