Economics - Study Mode
[#961] A firm earns economic profit when total profit exceeds
Correct Answer
(A) Normal profit
Explanation
Solution: A firm earns economic profit when total profit exceeds Normal profit. Economic profit is the profitability measurement that calculates the amount that revenues received from selling a product exceeds opportunity costs incurred from using resources to make and sell these products.
[#962] All inputs can be varied in
Correct Answer
(B) Long run
Explanation
Solution: All inputs can be varied in Long run. The long run is defined as a period in which all INPUTS are variable. Because of that all costs are variable too. You're right that in the short run your rent and the cost of the machines you've already bought are fixed costs. But in the long term they aren't.
[#963] Scarcity means
Correct Answer
(C) Less supply than demand
Explanation
Solution: Scarcity means Less supply than demand. Scarcity refers to the basic economic problem, the gap between limited – that is, scarce – resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible.
[#964] Who is the 'father of economics'?
Correct Answer
(B) Adam Smith
Explanation
Solution: Adam Smith is the 'father of economics'. Adam Smith is called the father of economics for his work on The Wealth of Nations which he published in 1776.
[#965] Which one of the following statement is false?
Correct Answer
(B) Economies of scale and economies of scope are the same