If expectations are rational, forecasting errors are pure random numbers.
Answer the following statement true (T) or false (F)
True
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"Trade restrictions will stop foreign imports, which will increase American employment and protect American jobs." Most economists realize this argument is wrong. Can you explain why?
If a firm is making zero economic profit, it
a. will be forced to shutdown and leave the market. b. will also generally be making zero accounting profit. c. is doing as well as typical firms in other markets. d. will not survive in the long run.
These are the cost and revenue curves associated with a firm. 
If the firm in the given graph were to produce Q1 and charge P3, the area C would represent:
A. deadweight loss. B. consumer surplus. C. producer surplus. D. profits.
Which would be a normative economic statement?
a. Retail sales were flat last month and continue on their downward trend b. Prices are increasing at a rate of 3 percent a year c. This administration should raise taxes to pay for childcare programs d. The poverty rate hit a new high last year