A line graph comparing total cost and total revenue for a good in a perfectly competitive market will consist of two ascending lines representing total cost and total revenue. Where on these lines is maximum profit indicated?
a. The smallest gap between total revenue and total cost
b. The point where total revenue passes total cost
c. The point where total cost passes total revenue
d. The largest gap between total revenue and total cost
d. The largest gap between total revenue and total cost
The maximum profit will occur at the quantity where the gap between total revenue and total cost is largest.
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Because special interest groups tend to favor transfer policies rather than economic growth policies, many economists believe that these special interest groups help to improve economic efficiency.
Answer the following statement true (T) or false (F)
Under a fixed exchange rate regime, if the domestic currency is initially ________, that is, ________ par, the central bank must intervene to purchase the domestic currency by selling foreign assets
A) overvalued; below B) overvalued; above C) undervalued; below D) undervalued; above
Suppose Larry's Lariats produced 25,000 lassos and sold each for $10. What was the profit for this company?
A. $250,000 B. $25,000 C. $125,000 D. Cannot calculate profit without more information.
Which of the following is an example of a positive economic statement?
a. The minimum wage should be raised to help low-income workers b. The size of the Federal government should be reduced c. Education and income are highly correlated d. Nigeria should be given more foreign aid to foster economic development