When a perfectly competitive firm's demand curve lies above its average total cost curve, the firm incurs an economic loss at that level of output

How does real gross domestic product (GDP) differ from nominal GDP?

A) Nominal GDP can be used to directly compare the amount of output produced from year to year, while real GDP cannot be used for such comparison. B) Nominal GDP controls for price changes, while real GDP does not. C) Real GDP controls for price changes, while nominal GDP does not. D) There is no difference between nominal GDP and real GDP.

The figure above shows the U.S. production function. How would an increase in income taxes be shown in the figure?

A) a movement from point C to point B B) a movement from point A to point B C) an upward shift or rotation of the production function D) a downward shift or rotation of the production function E) None of the above because the effects of an increase in taxes cannot be shown in the figure.