Question

Question 2 [10] TRUE/FALSE QUESTIONS Consider the following list of statements. Each statement is either true or false. You must read each statement carefully and then select the option that you believe is correct as your answer. Write down only the question number and next to the number either True or False. 2.1 A change in the size of the population due to a change in birth or death rates will not shift the market supply labour curve. Normal profit implies that all factors employed are earning an amount equal to their opportunity costs. 2.2. The graph below illustrates an improved technique for producing capital goods. 2.3. Canital ooords Consumer go

Answer 1

Answer:

2.1: False

Because change in size of population will change the labor force size which will lead to shift in the labor supply curve in the market

2.2 : True

2.3 : False

Because the production possibility curve has shift outwards for the consumer goods not for the capital goods

2.4: True

Economic cost = explicit cost + implicit cost

2.5: True

2.6: False

Because the equilibrium price and quantity is calculate by equating demand and supply so we can’t solve them separately. Equilibrium price and quantity is decided at the point where demand is equal to the supply

2.7: True

2.8: True

2.9 : True

2.10: False

Because here the firm is earning loss

Zero economic profit means firm is covering its cost but here the average cost is higher