In the graph below at P*, the firm is making ________ economic profits. 
A. positive
B. an indeterminate level of
C. zero
D. negative
Answer: D
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?Many externalities arise from poorly defined property rights.
Answer the following statement true (T) or false (F)
The production of a certain fertilizer emits a gas that keeps away mosquitoes and other insects from the surrounding community. This is an example of a ________
A) positive externality B) negative externality C) pecuniary externality D) comparative externality
For a monopsony the labor supply curve
A) does not exist. B) is the marginal product of labor curve. C) is the marginal cost of labor curve. D) lies below the marginal cost of labor curve.
Explain what is meant by capital flight. How would you distinguish capital flight from the normal desire of investors to diversify their portfolios by investing abroad?
What will be an ideal response?