If a government budget deficit increases, net exports must:
A. increase,or the excess of private saving over private investment must decrease.
B. decrease,or the excess of private saving over private investment must increase.
C. decrease,or the excess of private saving over private investment must decrease.
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Economic profits are zero if:
A. Implicit costs equal explicit costs.
B. Economic depreciation equals zero.
C. Total revenue equals the sum of all opportunity costs.
In a developed economy, the primary source of growth in potential GDP is:
A. Capital investment.
B. Labor supply growth.
C. Technology advances.
As a firm employs additional units of either labor or capital in its production process, holding the quantity of the other input constant, the firm is most likely to experience diminishing returns to:
A. Labor only.
B. Capital only.
C. Either labor or capital.
An oligopolistic industry has:
A. Few barriers to entry.
B. Few economies of scale.
C. A great deal of interdependence among firms.
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