If a firm is earning negative economic profits, it implies
a. That the firm's accounting profits are zero
b. That the firm's accounting profits are positive
c. That the firm's accounting profits are negative
d. More information is needed to conclude about accounting profits
d
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Don can produce 10 pens or 20 pencils in one hour while Bob can produce 5 pencils or 15 pens in one hour. Which of the following statements is correct?
a. Don has an absolute advantage over Bob in the production of pencils and Bob in the production of pens b. Bob has an absolute advantage over Don in the production of pencils c. Bob has a comparative advantage over Don in the production of pens d. Don has a comparative advantage over Bob in the production of pens e. Don does not have a comparative advantage in the production of either good
Expansionary fiscal policy in an open economy has a
a. greater effect than in a closed economy. b. similar effect in a closed economy. c. smaller effect than in a closed economy. d. greater effect than monetary policy.