Normal Profit is what a firm
A. usually makes.
B. is zero in the long run.
C. needs to make to maintain the incentive to remain in the industry.
D. a) and b)
Answer: C
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Foreign outsourcing is
A) the transfer of operations to foreign contractors. B) an example of internalization. C) an example of foreign direct investment. D) currently illegal in the U.S. E) the substitution of immigration for foreign direct investment.
In short-run equilibrium in perfect competition,
a. each firm's profit is measured by P - ATC b. each firm's profit is measured by ATC - P c. each firm's (economic) profit is positive d. the amount sold by existing firms at the market price is exactly equal to the quantity consumers demand at that price e. no firm wishes to enter the market
Which one(s) of the public debt forms is (are) marketable?
a. only the Treasury bond b. only the Treasury bill c. only the Treasury note d. Treasury notes, bills, and bonds e. only Treasury notes and bills
Which of the following best explains what is happening when disposable income equals zero?
a. All consumption has ceased.
b. Income is positive but stagnant.
c. All money is being saved instead of spent.
d. Savings or credit is being used to pay for necessities.