Which of the following provides the clearest evidence that a business firm is using resources productively?
a. economic profit
b. economic loss
c. high wages paid to workers
d. low wages paid to workers
a. economic profit
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The welfare loss of monopoly is also called
a. converted consumer surplus b. deadweight loss c. economic profit under monopoly d. producer surplus e. contestable profit
Due to an increase in the world price of cheese, the demand for the cheese exported by Petrovia decreases. This will result in a(n) _____ Petrovia's export function
a. upward shift of b. downward shift of c. upward movement along d. downward movement along
A tax levied on the sellers of a good shifts the
a. supply curve upward (or to the left). b. supply curve downward (or to the right). c. demand curve upward (or to the right). d. demand curve downward (or to the left).
The aggregate demand curve slopes downward indicating that:
A. an increase in the general price level will reduce the aggregate quantity of goods and services demanded. B. an increase in the general price level will increase the aggregate quantity of goods and services demanded. C. a change in the interest rate will alter the aggregate quantity of goods and services demanded. D. consumers substitute between domestic-made and foreign-made goods as their relative prices change.