In long-run equilibrium, the perfectly competitive firm sets its price equal to which of the following?
a. Short-run marginal cost.
b. Long-run average cost.
c. All of the answers are correct.
d. Short-run average total cost.
c
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Which of the following is NOT an advantage of a futures contract over a forward contract?
A) reduced counterparty risk B) increased flexibility C) lower information cost D) increased liquidity
Using the income approach, the largest component in the calculation of GDP is:
a. net interest. b. rental income. c. profits. d. compensation of employees.
Paine Pharmaceuticals produces medicines in the U.S. Its overseas sales
a. are an export of the U.S. and increase U.S. net exports. b. are an export of the U.S. and decrease U.S. net exports. c. are an import of the U.S. and increase U.S. net exports. d. are an import of the U.S. and decrease U.S. net exports.
If the rate of inflation is zero, prices are expected to remain stable, and the nominal rate of interest is 3 percent, then the
A. nominal rate is greater than the real rate of interest. B. investment demand schedule will shift upward. C. real rate of interest is less than the nominal rate. D. real rate of interest is equal to the nominal rate.