Question

If a firm is making a normal profit, economic profits are:

	a.	zero.
	b.	positive.
	c.	negative.
	d.	increasing fast

In Romer’s influential paper he divided the economic world into:

	a.	resources and ideas.
	b.	objects and resources.
	c.	objects and ideas.
	d.	utilities and objects.
	e.	None of these answers is correct.

In economics, a rival good is one that:

	a.	cannot be consumed by more than two people at a time.
	b.	can be consumed by more than one person at a time.
	c.	is congested if used by more than one person at a time.
	d.	cannot be consumed by more than one person at a time.
	e.	None of these answers is correct.

Which of the following is a nonrival good?

	a.	a peanut butter sandwich
	b.	orange juice
	c.	a jacket
	d.	All of these answers are correct.
	e.	None of these answers is correct.

Answer 1

Ans: a ) Zero

Explanation:

If a firm is making a normal profit, economic profits are zero. Because at normal profit , total revenue equals to total cost.

Economic profit = Total revenue - total explicit cost - total implicit cost

Ans: c ) objects and ideas.

Ans: d ) cannot be consumed by more than one person at a time.

Ans: e ) None of these answers is correct.

Explanation:

Public goods are non rival in nature whereas private goods are rival in nature in terms of   consumption.