Suppose a typical firm in a particular industry is making positive economic profits. These economic profits
a. reflect a waste of society's scarce resources and reflect inefficient production.
b. signal owners of factors of production to move their resources out of that industry.
c. imply that accounting costs are greater than economic costs in this industry.
d. signal owners of factors of production to move resources into this industry.
D
You might also like to view...
An example of moral hazard is
a. people drive as carefully in icy conditions with antilock brakes as without b. people drive as safely with more airbags as without c. football players 'spear' with their heads when tackling more often with safer helmets d. people read the medicine warnings as carefully when self-medicating versus with a doctor's prescription
How do changes in income tax policies affect aggregate demand?
A) Higher taxes increase disposable income, consumption, and aggregate demand. B) Higher taxes reduce disposable income, consumption, and aggregate demand. C) Higher taxes increase corporate investment and aggregate demand. D) Higher taxes increase aggregate supply and thus increase aggregate demand as well.