Answer the following statement true (T) or false (F)
1) The wants of consumers are expressed in the product market with "dollar votes."
2) Costs can be defined as total payments made to workers, land owners, and capital suppliers
less payments to the entrepreneur for organizing and combining the other resources used to
produce a good.
3) Continued losses in an industry will cause some firms to reduce output or eventually leave the
industry.
4) The guiding function of prices tends to keep resources flowing toward their most highly valued
uses.
1) T
2) F
3) T
4) T
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Refer to Table 12-3. What will Arnie's output be and how much profit will he earn if the market price of basketballs is $5.00?
A) Q = 0; profit = -$10.00 B) Q = 3; profit = -$7.50 C) Q = 1; profit = -$10. D) Price and profit cannot be determined from the information given.
A deficit in the current account means:
a. Actually, a deficit in the current account is impossible. It must equal zero. b. Imports of goods and services exceed exports of goods and services. c. The sum of the financial and capital accounts is positive. d. The sum of exports of goods and services plus net international income is negative. e. The sum of the financial, capital, and reserve accounts is positive.