If losses are unavoidable in an uncertain world, then
A) profits are too.
B) profits are only the result of good luck.
C) profits are avoidable.
D) profits are the result of people acting with perfect information.
A
You might also like to view...
Lolita wants to purchase a beautiful art deco office building built in the 1920s, tear it down, and construct a rather bland, glass-and-steel office building that will confer $2 million of benefits to society. In its current state, the art deco office building is worth $1.7 million. Lolita goes to the city council with her proposal and tells the council members that the new office building will hold more tenants and therefore increase employment and tax revenues. If the city council agrees to use eminent domain to allow Lolita to proceed with her project, society as a whole will
A) be made poorer since eminent domain is a costly process. B) be made poorer since the area will be less aesthetically beautiful. C) be made richer since the project confers benefits that are greater than the current value of the art deco office building. D) not be affected since the project only encompasses one small parcel of land.
Select the phrase that correctly completes the following statement. "A decrease in the expected future price caused an increase in the supply of smartphones. As a result
A) the equilibrium quantity of smartphones decreased." B) the price of smartphones decreased and the quantity of smartphones demanded increased." C) the price of smartphones decreased and the demand for smartphones increased." D) the price of smartphones decreased. The lower price caused the supply of smartphones to decrease."
Which of these is true of the expected price level in a labor market? a. It is the equilibrium price level in the short run
b. It determines the actual price level in the short run. c. It determines the actual price level in the long run. d. It allows firms and resource owners to make long-term wage agreements. e. The difference between the expected and actual price levels is equal to the actual inflation rate.
Which of the following is a typical example of a fixed cost of production in a business firm?
A. Depreciation of capital B. Wages paid to hourly workers C. Electricity charges D. Sales taxes due