When firms in a price-taker market are temporarily able to charge prices that exceed their production costs,
a. the firms will earn long-run economic profit.
b. additional firms will be attracted into the market until price falls to the level of per-unit production cost.
c. the firms will earn short-run economic profits that will be offset by long-run economic losses.
d. the existing firms must be colluding or rigging the market, otherwise, they would be unable to charge such high prices.
B
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Which of the following represent expansionary fiscal policy?
A) an increase in marginal individual income tax rates B) an increase in average individual income tax rates C) a cut in corporate income tax rates D) a reduction in government spending
The medium of exchange is defined as
A) an object that is accepted in return for goods and services. B) the exchange of goods and services directly for goods and services. C) an item that can be stored and hold its value over time. D) credit cards. E) barter.
The monthly mortgage payments made by a homeowner are
A) always sunk costs because the costs of constructing the house lie entirely in the past. B) marginal costs if the house is new but sunk costs if it was purchased from a previous owner. C) marginal costs of continuing to own and occupy the house. D) not marginal costs because the house will continue to exist whether or not the payments are made. E) sunk costs only if all the bills for earlier construction work have been fully paid.
The development of modern rich nations can be characterized by three? stages:
What will be an ideal response?