When you have a job and your employer compensates you for your time with money, resulting in both of you being better off, it is an example of a voluntary exchange
Indicate whether the statement is true or false
TRUE
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An economic system in which relative prices change to reflect changes in supply and demand for different commodities is known as a
A) socialist system. B) communist system. C) queuing system. D) market system.
In long-run equilibrium,
a. perfectly competitive firms in a decreasing-cost industry can earn economic profits b. perfectly competitive firms in an increasing-cost industry can earn economic profits c. perfectly competitive firms in a constant-cost industry can earn economic profits d. perfectly competitive firms can earn only normal profits e. no entry occurs in an increasing-cost perfectly competitive industry
A price ceiling imposed on a good that is below the equilibrium price will result in a shortage of that good
a. True b. False Indicate whether the statement is true or false
Assuming fixed costs are positive, over a range of output in which average total costs were constant,
a. average variable costs would be constant as output increases. b. average variable costs would be falling as output increases. c. average variable costs would be rising as output increases. d. marginal cost would be less than average variable cost.