Suppose a Typical Firm in a Particular Industry Is Making

question 26

Multiple Choice

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.

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Definitions:

Working Class

A socio-economic group consisting of people employed in manual or industrial work, often associated with lower wages and limited access to educational opportunities.

Corrupt Institutions

Organizations characterized by dishonest or fraudulent conduct by those in power, typically resulting in exploitation.

Labor Movement

A collective organization of workers and unions aimed at improving workers' rights, conditions, and political power.

Craft Unions

Labor unions that represent workers in specific trades or professions, focusing on skills training, professional development, and standards within their craft.