What is a normal profit?
What will be an ideal response?
A normal profit is the return a firm's owner could obtain in the best alternative business. As a result, it is an opportunity cost to the firm.
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The largest component of aggregate expenditure is
A. government purchases. B. exports. C. consumption. D. investment.
What is a fixed exchange rate and how is its value fixed?
What will be an ideal response?
If the supply of labor increases while demand for labor is unchanged,
A) the real wage and labor productivity will increase. B) the real wage will decrease and labor productivity will increase. C) the real wage will increase and labor productivity will decrease. D) the real wage and labor productivity will decrease.
When future events cannot be assigned probabilities, we are talking about
A) risk. B) uncertainty. C) a clouded future. D) financial risk.