According to the text, the Fed and other policymakers are concerned about:
A. inflation rates that are too high only.
B. inflations rates that are too low only.
C. inflation rates that are either too high or too low compared to its set target.
D. annual inflations rates that exceed 10%.
Answer: C
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Assume the United States televison manufacturing industry accuses the Japanese television manufacturers of dumping. Why should consumers not necessarily be worried about this practice?
What will be an ideal response?
Accounting profit is
a. always less than economic profit b. never less than economic profit c. equal to economic profit if a normal profit is earned d. less than economic profit only when implicit costs are greater than explicit costs e. greater than economic profit only when implicit costs are greater than explicit costs
According to the quantity theory of money, if M's growth is lower than Q's, then:
a. V falls. b. V rises. c. P stays the same d. P falls. e. P rises
In the long run, firms in a perfectly competitive market will:
A. earn positive economic profits. B. exit if the price is lower than their lowest average total cost. C. attract other firms to the market if the price is equal to their lowest average total cost. D. not attract other firms if they are earning slightly positive economic profits.