Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the price of a doughnut is 25 cents, then at this firm's profit maximizing level of output, the firm will earn an economic ________ of ________ per day.
A. loss; $80
B. loss; $10
C. profit; $80
D. profit; $8
Answer: D
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Which of the following is least likely to contribute to the volatility of investment spending?
a. Expectations about business conditions b. Changes in government spending c. Changes in tax laws d. Changes in capacity utilization e. Interest rate fluctuations
If the number of employers for a particular type of labor increases, which of the following shifts should occur in the labor market for the particular type of labor?
A. Demand for labor should shift to the left. B. Demand for labor should shift to the right. C. Supply of labor should shift to the right. D. Supply of labor should shift to the left.
Imports are a leakage in the sense that
A. the international financial system is unstable. B. consumers buy foreign output of goods and services. C. foreigners earn less than U.S. workers. D. a trade deficit increases aggregate demand.
A consumption possibilities curve shows the combinations of two goods that can be consumed when a nation specializes in producing a particular good and trades with another nation.
Answer the following statement true (T) or false (F)