In the long run, a profit-maximizing monopolistically competitive firm sets it price:
A. above marginal cost.
B. below marginal cost.
C. equal to marginal revenue.
D. equal to marginal cost.
Answer: A
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What has been the main argument over recent efforts to replace the personal income tax with a value-added tax?
What will be an ideal response?
Which of the following is FALSE concerning the long run?
A) Economists believe that fiscal and monetary policies have no permanent effects on the economy. B) Economists more or less agree that the economy tends to fluctuate around the level that is consistent with full employment. C) In the long run, the unemployment rate returns to its normal level. D) The current account must tend toward balance in the long run. E) None of the above.
Most of the disagreement among economists involves normative debates
a. True b. False
GNP converted into dollars using an average exchange rate over several years adjusted for rates of inflation is
A. real national product. B. gross domestic product. C. net national product. D. gross national income.