The market for Product A has many sellers, selling identical products, each earning an economic profit of zero in the long run. The market for Product B has many sellers, selling differentiated products, each earning an economic profit of zero in the long run. Given this information, one can conclude thatÂ
A. The markets for Product A and Product B are perfectly competitive.
B. The markets for Product A and Product B are monopolistically competitive.
C. The market for Product A is monopolistically competitive and the market for Product B is perfectly competitive.
D. The market for Product A is perfectly competitive and the market for Product B is monopolistically competitive.
Answer: D
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If output per worker in a steady state is $30,000, depreciation is 13%, the population growth rate is two percent, and the saving rate is 20%, what is the steady state capital-labor ratio?
A) $10,500 B) $85,714 C) $22,500 D) $40,000
Poverty and inequality in the U.S. are well below the OECD average
a. True b. False Indicate whether the statement is true or false
Until the 1980s, most of the national debt was
a. owned by foreigners. b. acquired either during wars, especially World War II, or during recessions. c. owned by banks. d. financed by printing money.
Why do economists say that everyone faces scarcity?
a. All people must share the same natural resources. b. Everyone competes for the available goods and services. c. People are willing to pay for goods and services. d. No one can have all the goods and services they desire.