For markets operating at quantities lower than the equilibrium quantity produced in an equivalent perfectly competitive market:
A. consumer surplus is always increased.
B. total surplus for society is reduced.
C. the outcome is efficient.
D. total surplus is increased.
Answer: B
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Human capital is acquired
A) only in school. B) only through on-the-job training. C) only through job experience. D) through schooling, job training, and experience. E) only at birth, that is, it's people's inborn talents.
Why does a firm in monopolistic competition earn zero economic profit rather than an economic profit in the long run?
What will be an ideal response?
An increase in the interest rate will cause
A) planned investment spending to increase. B) planned investment spending to decrease. C) the investment function to shift out. D) the investment function to shift in.
Which of the following is a long-run adjustment?
a. A new economics professor is hired on campus. b. General Motors increases its orders for steel. c. Microsoft cuts back its hiring of new graduates. d. Glow Electric disassembles one of its nuclear power plants. e. Texaco buys more crude oil to refine into gasoline.