A President who favors the use of government spending and taxes as tools to offset instability in the economy is likely to have advisers who are oriented toward

Below the short-run shutdown price, the firm

A) is earning positive economic profits. B) is earning negative economic profits. C) is making a normal rate of return on its capital investment. D) may be earning a positive or negative economic profits depending upon costs.

On a given production possibilities frontier, which of the following is not assumed to be fixed?

a. the amount of labor available b. the amount of capital available c. the level of technology d. the amount of land and natural resources available e. production of each item