Which of the following is true of normal profits?
A. They are necessary to keep a firm in the industry in the long run
B. They are zero under pure competition in the long run
C. They are excluded from a firm's costs of production
D. They are what attract other firms to enter an industry
A. They are necessary to keep a firm in the industry in the long run
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The allocations of goods and services from one group in a society to another are called:
a. mutually voluntary exchanges. b. in-kind transfers. c. grants. d. economic rents. e. transfer earnings.
Simon's man from mars would see primarily
a. the flow of international trade b. capital hiring labor c. markets failing d. the flow of transactions within enterprises e. all of the above
Use the following graph to answer the next question.
Assume that Japan and the United States are engaged in a system of flexible exchange rates. If more Japanese tourists decide to visit the United States for their vacations, the yen will ________ and the U.S. dollar will ________.
A. depreciate; depreciate B. depreciate; appreciate C. appreciate; depreciate D. appreciate; appreciate
Agricultural explanations of the business cycle are not as important today as they were 50 to 75 years ago because today
a. agricultural production is more mechanized. b. agricultural production is a smaller portion of the total economy. c. agricultural production is greater. d. we eat less.