Define an efficient market
What will be an ideal response?
An efficient market is one in which profit opportunities are eliminated almost instantaneously.
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Resources are
A) unlimited. B) able to be replicated in large quantities. C) what people would buy if their income was unlimited. D) used to produce goods and services to satisfy people's wants.
Which of the following statements is TRUE about the economic profits earned by a monopolistic competitor firm in the long run?
A) Economic profits can be positive since firms have some degree of monopoly power. B) Economic profits will be positive since the firm has a downward sloping demand curve. C) Economic profits will tend towards zero since positive profits will attract new firms into the industry. D) Economic profits can be negative since there is so much competition in the market.
Normal goods always obey the law of demand because, as the price of such a good rises, the
a. fall in quantity demanded due to the substitution effect is offset by a rise in quantity demanded due to the income effect b. fall in quantity demanded due to the substitution effect is reinforced by a fall in quantity demanded due to the income effect c. substitution effect will lead to an inward shift of the demand curve d. substitution effect will lead to an increase in quantity demanded e. rise in quantity demanded due to the substitution effect is offset by a fall in quantity demanded due to the income effect
Who among the following would be counted as "unemployed"?
a. Shasta, who is waiting to be recalled to a job from which she has been laid off. b. Karen, who neither has a job nor is looking for one. c. Mary, who worked only 35 hours last week. d. None of the above is correct.