Profits can be thought of as
a. the return to enterprise.
b. the reward for taking a risk and winning.
c. what is left over after all wages, rent, and interest have been paid.
d. All of these.
d. All of these.
You might also like to view...
Refer to Figure 5-3. With insurance and a third-party payer system, what is the amount of the deadweight loss?
A) $0 B) $2,500 C) $5,000 D) $24,000
Economic profit equals accounting profit minus:
a. explicit costs. b. implicit costs. c. fixed costs. d. variable costs.
Which of the following is an example of a normative economic statement?
a. The inflation rate in the United States decreased 4 percent because the price of energy fell. b. The economy grew at an annual rate of 5 percent during the first quarter of this year. c. If two automobile companies merge, the price of automobiles will rise. d. An increase in international trade benefits some workers but hurts others. e. The minimum wage should be increased so that low-income workers can afford to keep up with the cost of living.
A firm is a price taker in the labor market if
A. there is a scarcity of labor in the market. B. the hiring of more workers will leave the existing wage rate unchanged. C. the skills of available workers do not match the requirements for the job. D. the hiring of more workers will drive the existing wage rate up.