Refer to the graphs below for a competitive market in the short run. What will happen to the firm's economic profits as long-run market adjustments occur?
A. Profits will increase to some positive value
B. Profits will decrease to some negative value
C. Profits will increase to zero
D. Profits will stay the same as they are now
C. Profits will increase to zero
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According to John Rawls, the fair distribution of income is the one that
A) makes the poorest person as well off as possible. B) makes the average person as well off as possible. C) results in equal income for all society members. D) is based on fair rules.
Which of the following does NOT change supply?
A. Changes in technology B. Changes in expectations about prices C. Prices D. Numbers of suppliers
________ assist in the initial sale of securities in the primary market; ________ assist in the trading of securities in the secondary markets
A) Investment banks; mutual funds B) Commercial banks; mutual funds C) Investment banks; securities brokers and dealers D) Commercial banks; securities brokers and dealers
If the economic growth rate SLOWS from 5% to 1%, the simple accelerator hypothesis suggests that
A) investment will continue to rise as output increases. B) investment will fall as output increases. C) investment will accelerate since output growth is positive. D) None of the above is correct.