Define abnormal profit
Abnormal profit: It is the gain earned over and above the normal profit.
Line T2 depicts as in below graph a tax system which is: (i) progressive. (ii) recessive. (iii) proportional. (iv) biased. (v) regressive. Q : Price elasticity of demand when prices When the prices of generic yachts rise by $500,000 to $600,000, causing yearly sales to drop from 30,000 to 10,000, in that case the price elasticity of demand for such yachts equals: (w) 11.00. (x) 2.75. (y) 5.50. (z) 13.75.
When the prices of generic yachts rise by $500,000 to $600,000, causing yearly sales to drop from 30,000 to 10,000, in that case the price elasticity of demand for such yachts equals: (w) 11.00. (x) 2.75. (y) 5.50. (z) 13.75.
When the real wage increases, an extra unit of: (1) Labor supplied will purchase fewer goods. (2) Leisure is more costly. (3) Output needs more labor time. (4) Capital becomes more highly employed. Find out the right answer from th
According to several critics who favor reducing welfare payments, and existing welfare programs as: (1) cannot cure poverty without substantial funding hikes. (2) are justified only when they increase total production. (3) harm poor people by creating
The absolute value of price elasticity of demand tends to be lower when: (w) the greater the number of substitutes available. (x) the more important the product is in classical budgets. (y) for necessities than for luxury items. (z) when more time is
Firm A in below illustration of figure maximizes profit and is: (1) demonstrated as operating in the long run. (2) capable of reaping economic profit of P2P1de, since only in the short run. (3) incurring economic losses equivalent to fixed costs of P3
What is the formula for primary deficit? Answer: Primary deficit = fiscal deficit – interest payment.
Assume a drought in the Great Plains reduces the supply of wheat. Noting that wheat is a basic ingredient in the production of bread and that potatoes are a consumer substitute for bread, we would expect the price of wheat to: A) rise, the supply of bread to increase,
Price ceilings tend to purpose of: (a) opportunity costs to decline. (b) monetary prices to rise legally. (c) shortages of price controlled goods. (d) black markets to disappear. (e) surpluses of goods at inflated prices. Q : Price ceilings and price floors Price Price ceilings and price floors: 1) cause surpluses and shortages respectively. 2) make the rationing function of free markets more efficient. 3) interfere with the rationing function of prices. 4) shift demand and supply curves and therefore have no effect on the rat
Price ceilings and price floors: 1) cause surpluses and shortages respectively. 2) make the rationing function of free markets more efficient. 3) interfere with the rationing function of prices. 4) shift demand and supply curves and therefore have no effect on the rat
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