If business losses are the result of uncertainty in the real world, then
A) business profits are too.
B) profits must equal losses in the short run.
C) profits must equal losses in the long run.
D) losses could be eliminated if we could eliminate uncertainty in the real world, but profits will still remain.
A
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Which of the following statements is true of the scientific method?
A) The scientific method may not reveal a "true" model of the world. B) The scientific method does not require the models to be tested with data. C) The scientific method used by economists and scientists is independent of empiricism. D) The scientific method can help develop accurate models even when data are unavailable.
Ryan sells 200 plastic ball point pens at $0.50 each. His total costs are $25 . His profits are
a. $25. b. $75. c. $100. d. $175.
If real GDP is less that potential GDP, which of the following fiscal policies would increase real GDP?
a) only a decrease in government expenditure b) only an increase in taxes c) an increase in government expenditure and/or a decrease in taxes d) a decrease in government expenditure and/or an increase in taxes
Answer the following statement true (T) or false (F)
1) Supply-side market failures occur because it is impossible in certain cases for sellers to charge consumers what they are willing to pay for a product. 2) When a supply-side market failure occurs, the costs are greater than the benefits for the last unit(s) of output produced. 3) Along a demand curve, product price and consumer surplus are inversely related. 4) Along a supply curve, product price and producer surplus are inversely related.