Which of the following is included in both the balance of trade and the balance of payments?
A. exports
B. earnings on domestic assets owned by foreign residents
C. earnings by domestic residents on assets located abroad
D. international capital movements
Answer: A
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If a firm traded on the New York Stock Exchange posts an accounting profit of $10 million, then the firm is making a positive economic profit
A) only if the Securities and Exchange Commission (SEC) approves the accounting report. B) only if the firm's opportunity cost is less than $10 million. C) only if the firm's opportunity benefit is more than $10 million. D) only if the firm's management receives stock compensation.
A monopolist's profit per unit is shown by the difference between price and average cost per unit
a. True b. False Indicate whether the statement is true or false
Use the following graph for a pure monopoly operating in the short run to answer the next question.
At the profit-maximizing level of output, this firm ________.
A. faces a total fixed cost equal to the area of BEFC B. should shut down C. generates a loss per unit equal to DE D. generates an economic profit equal to the area of ABED
If the market price is above the equilibrium price:
a. A surplus will occur and producers will produce less and lower prices b. Producers will make extremely high profits c. A surplus will result and consumers will bid prices up d. A shortage will occur and producers will produce more and lower prices