Both perfect competitors and monopolistic competitors
A. Earn zero economic profit in the long run.
B. Find prices pushed to the minimum of long-run ATC by entry.
C. Experience product differentiation.
D. Use marginal cost pricing.
Answer: A
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If Xt and Yt are cointegrated, then the OLS estimator of the coefficient in the cointegrating regression is
A) BLUE. B) unbiased when using HAC standard errors. C) unbiased even in small samples. D) consistent.
Competitive firms decide how much output to sell by producing output until the price of the good equals
a. marginal product. b. the value of marginal product. c. marginal cost. d. marginal profit.
By investing in both human capital and physical capital, Laci’s country has achieved an economic growth rate of 1.9 percent. Assuming Laci’s country can maintain this growth over time, the economy should double in approximately ______ years.
a. 133 b. 36.8 c. 3.68 d. 13.3
Using Figure 1.6, we know the production of 90 units of soda and 4 units of pizza is 
A. possible, but only if all resources were fully employed. B. impossible because we either do not have the resources or the technology. C. undesirable. D. possible, but there would be unemployed resources.