Which of the following does not hold true for a perfectly competitive firm in long-run equilibrium?
A) Its economic profit will be zero.
B) It will minimize average total cost.
C) It will charge a price equal to marginal cost.
D) Marginal cost will be minimized.
Answer: D
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The original mission of the World Bank was to
A) provide capital to underdeveloped countries. B) provide capital to firms around the world. C) provide financial assistance for the reconstruction of war-damaged nations. D) provide a safe place for people around the world to put their money. E) help countries manage their exchange rates.
Specialization of labor
a. increases productivity without creating any problems b. reduces productivity, and is usually eliminated by business firms c. can create problems of boredom and repetitive motion injuries d. prevents the introduction of more sophisticated and efficient production techniques e. ignores individual preferences and natural abilities
The international trade response to a contractionary monetary policy will cause aggregate demand to shift ____ and aggregate supply to shift ____.
A. outward; outward B. inward; outward C. outward; inward D. inward; inward
Implicit costs
a. do not require an outlay of money by the firm. b. do not enter into the economist's measurement of a firm's profit. c. are also known as variable costs. d. are not part of an economist's measurement of opportunity cost.