Which of the Following Best Defines Gross Job Creation

question 8

Multiple Choice

Which of the following best defines gross job creation?

• A) the number of jobs created by new firms less jobs lost in established firms in a given year
• B) the sum of the increase in the number of jobs across all new and established firms in a given year
• C) the increase in the number of jobs created by new firms in a given year
• D) the increase in the number of jobs created by established firms in a given year

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Definitions:

Average Total Cost

The per unit cost of production, calculated by dividing the total costs (fixed and variable) by the total quantity of output produced.

Economic Profits

The excess of a firm's total revenues over its opportunity costs, reflecting profitability beyond the normal return on investment.

Competitive Price-searcher Market

A market in which firms have some control over prices because their products are differentiated, but they still face competition and must search for competitive pricing strategies.

Zero Economic Profit

A situation where a firm's total revenue equals its total costs, including both explicit and implicit costs, indicating no supernormal profit.