If resources are misallocated in a perfectly competitive market, then, in the long run, profit opportunities will:
A. not bring about a reallocation of resources unless firms are subsidized.
B. not bring about a reallocation of resources unless there is government regulation.
C. bring about a less efficient allocation of resources.
D. bring about a more efficient allocation of resources.
Answer: D
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The type of unemployment created by the normal rate of reentry and entry into the labor force is
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.
If a company pays a dividend of $2 to be received one year from now, dividends are expected to grow at a rate of 3 percent per year for the indefinite future, and the interest rate is 4 percent, the price of the company's stock should be ________ per
share. A) $3.40 B) $28.57 C) $200.00 D) $340.00
A strong Japanese yen:
A) induced Japanese auto manufacturers to increase their production of cars in Japan. B) induced Japanese auto manufacturers to shift their production of cars to the U.S. C) made Japanese exports more price competitive globally. D) had no meaningful impact on Japanese auto manufacturers.
If a person completely smooths consumption over his lifetime, then consumption is best represented by which of the following?
A) wealth / the number of years the person expects to live B) lifetime income / the number of years the person expects to work C) (wealth + lifetime income) / the number of years the person expects to live D) (wealth + lifetime income) / the number of years the person expects to work