When a firm incurs negative economic profit, it should:
a. hire more laborers to make the business activity profitable.
b. transfer the resources from its current use to other alternative uses.
c. purchase additional raw materials to produce more output.
d. transfer additional resources from other alternative uses to the current activity.
e. continue to operate with the same resources.
b
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Which of the following would be classified as a fixed cost for the proprietor who owns and operates the local Texaco station?
A) the federal excise tax paid on each gallon of Texaco gasoline sold B) the state income tax on the profit earned C) the rent paid on the 10 year lease for the property on which the station is located D) the Social Security tax the owner pays the federal government on the owner's income
Which of the following would be classified as private investment?
a. An individual's purchase of a used car b. A family's purchase of groceries c. An individual's purchase of a General Electric bond d. A family's purchase of a newly built home e. A family's purchase of a new car