When accounting profits are zero, which of the following is most likely to be true?
A. Economic profits could be zero.
B. Economic profits could be positive.
C. Economic profits are negative.
D. All of these are likely.
C. Economic profits are negative.
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Which of the following is true?
i. A rational choice is always made in the pursuit of social interest. ii. Economics is a social science. iii. Economists try to understand how the economic world works by testing positive statements. A) only i B) ii and iii C) only ii D) i and ii E) only iii
How does a quota affect the consumer surplus and the producer surplus from the imported good? Is the overall economy helped or harmed by quotas? Briefly explain your answers
What will be an ideal response?
The size of the spread that a dealer will quote for a foreign exchange transaction will vary depending on
A) the degree of market volatility at the time. B) the degree of risk associated with a particular currency. C) the size of the market for the currency being traded. D) All of above.
A higher nominal interest rate ________ the profit-maximizing level of MPK for firms, leading firms to a ________ capital-output ratio, thus ________ net investment
A) raises, higher, raising B) raises, lower, lowering C) lowers, higher, raising D) lowers, higher, lowering E) lowers, lower, raising