If a firm is earning just enough to cover all its economic profits does that mean it's not making a profit?
What will be an ideal response?
No, it means that it is earning a normal profit.
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Suppose the government passed a law, taxing manufacturers according to the amount of pollutants they released into the environment. This law would be an example of which regulatory function of the government?
A) protect consumers B) promote competiton C) regulate negative externalities D) supervise labor and management relations
Health insurance should be provided to every citizen in a wealthy nation such as the United States. This statement is best described as
A. a positive statement. B. a marginal statement. C. a normative statement. D. an implication of an efficient market.
What happens to the quantity of cell phones supplied and the supply of cell phones if the price of a cell phone falls?
What will be an ideal response?
If a union sets the wage rate to maximize the total wage receipts of its members, the price elasticity of demand for labor would be
A) zero. B) numerically equal to 1. C) finite, but greater than -1. D) positive, but less than 1.