In considering economic profit in a market economy, it is correct to say that
A. economic profit tends to reduce the production efficiency of the economy, leading to wasted resources.
B. economic profit performs an important function in allocating resources to their most highly valued uses.
C. economic profit will only occur, even in the short run, as a result of imperfect competition.
D. there should never be any economic profit.
Answer: B
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Which of the following statements is true?
A) Extractive economic institutions foster economic activity, productivity growth, and economic prosperity, while inclusive institutions fail to do so. B) Both extractive and inclusive institutions foster economic activity, productivity growth, and economic activity. C) Both extractive and inclusive institutions fail to foster economic activity, productivity growth, and economic activity. D) Inclusive economic institutions foster economic activity, productivity growth, and economic prosperity, while extractive institutions fail to do so.
Which of the following people would be considered unemployed?
A) Sam, a part-time worker who wishes to work full time B) Pat, who gave up looking for a job because he was discouraged about his job prospects C) Victoria, who does not have a job and has been actively searching for work, but turned down a job paying less than she desired D) Shirley, who is working but expects to be laid off at the end of the month E) Bobby, a full-time student in his last term before he graduates and who has not yet started to look for a job
The task of economic regulation is to:
a. protect monopoly profits. b. approximate the results of the competitive market. c. replace competition with government ownership. d. ensure laissez faire. e. increase competition within the market.
Refer to the information provided in Table 24.8 below to answer the question(s) that follow.Table 24.8All Figures in Billions of DollarsOutput (Income)Net TaxesConsumption Spending (C = 100 + 0.9Yd)SavingsPlannedInvestment PurchasesGovernment Spending2,6001002,3501501502002,8001002,5301701502003,0001002,7101901502003,2001002,8902101502003,4001003,0702301502003,6001003,2502501502003,8001003,430270150200Refer to Table 24.8. The economy is at the equilibrium level of output. If government spending decreases by $50 billion, the new equilibrium level of output is
A. $3,100 billion. B. $2,400 billion. C. $1,550 billion. D. $1,450 billion.