A perfectly competitive firm is definitely making an economic profit when

In a market economy, which of the following would most likely cause a prolonged grain surplus?

a. a decrease in the demand for grain b. an increase in the supply of grain c. imposition of a price floor above the equilibrium price of grain d. imposition of a price ceiling below the equilibrium price of grain

Dee is an accomplished actress and a homeowner who pays a landscaper to maintain her lawn rather than do it herself. Dee has determined that she can earn more in the hour it would take her to work on her lawn than she must pay her landscaper. This scenario is an example of which principle of economics?

a. Trade can make everyone better off. b. Markets are usually a good way to organize economic activity. c. Governments can sometimes improve market outcomes. d. Prices rise when the government prints too much money.