What does it mean for a firm to be breaking even?
What will be an ideal response?
If a firm is breaking even, it is earning exactly a normal rate of return. This means that total revenue is just enough to cover all economic costs including a normal profit.
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The democratic political process operating at the national level tends to result in
A) balanced budgets. B) deficits. C) surpluses. D) surpluses alternating with deficits in a countercyclical manner.
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. The opportunity cost for Canada is:
A. 2 apples for each pair of shoes. B. 2 pairs of shoes for each apple. C. ½ apple for each pair of shoes. D. ½ pair of shoes for every 2 apples.
Which of the following is illustrated by the distance between the aggregate expenditure line and the 45-degree line at each level of real GDP?
a. The level of saving in an economy b. Unplanned inventory change c. Planned investment undertaken in an economy d. The marginal propensity to save e. The marginal propensity to consume
If a country allows free trade and imports cars, then it is the case that the gains to domestic producers outweigh the losses to domestic consumers
a. True b. False Indicate whether the statement is true or false