Use the figure above to answer this question. Figure ________ shows a short-run equilibrium in good times because the firm makes a(n) ________
A) A; economic profit
B) A; normal profit
C) B; normal profit
D) B; economic loss
E) C; normal profit
A
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Why might an oil cartel's effectiveness be undermined during a recession but strengthened during an economic boom?
What will be an ideal response?
A professional basketball players' union negotiates a contract that dramatically increases all players' salaries. How would this influence the opportunity cost for a player who was considering giving up basketball to pursue a career in broadcasting?
a. It would not affect the opportunity cost of playing basketball or of broadcasting. b. It would increase the opportunity cost of continuing to play professional basketball. c. It would cause the production possibilities frontier to become convex. d. It would increase the opportunity cost of becoming a broadcaster. e. It should have no bearing on the player's decision from an economic standpoint.
The Coase theorem states that if private parties can negotiate the purchase and sale of the right to perform activities that cause externalities, then they:
A. will never arrive at efficient solutions to the problems caused by externalities. B. will never perform activities that generate negative externalities. C. will always perform activities that generate positive externalities. D. can always arrive at efficient solutions to the problems caused by externalities.
The ratio at which a country can trade its exports for imports from other countries is called comparative advantage
Indicate whether the statement is true or false