Businesses fail because:
A. entrepreneurship is present.
B. they follow the principle of consumer sovereignty too closely.
C. they earn excessive profits.
D. the invisible hand determines that they are not producing something that is socially valuable.
Answer: D
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When firms decide how much labor to hire, one of the factors that influences them is the
A) nominal wage rate plus the inflation rate. B) nominal wage rate divided by the price level and then multiplied by 100. C) nominal wage rate minus the inflation rate. D) real wage rate plus the inflation rate. E) nominal wage rate divided by the inflation rate and then multiplied by 100.
Which round of GATT led to the formation of the WTO?
What will be an ideal response?
While waiting in line to buy two tacos at 75 cents each, and a medium drink for 80 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50. For Jordan, the marginal cost of purchasing the third taco would be Select one:
a. Zero. b. 20 cents. c. 75 cents. d. 80 cents.
Which statement is true about the monopolistic competitor in the long run?
A. It will be making a profit. B. It will be taking a loss. C. It may be making a profit or taking a loss. D. It will be breaking even.