Assume the market for ball bearings is purely competitive. Currently, each of the firms in this market is earning negative economic profits. In the long run, we can expect the market:
A. Supply to increase and firms' profits to decrease
B. Demand to increase and firms' profits to increase
C. Supply to decrease and firms' profits to increase
D. Demand to decrease and firms' profits to decrease
C. Supply to decrease and firms' profits to increase
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The following table shows cost data for a perfectly competitive firm.OutputAverage Fixed CostAverage Variable CostAverage Total CostMarginal Cost1$300$100$400$1002150752255031007017060475731488056080140110650901401407431031461808381191562309331381712901030160190360If the market price for the firm's product is $180, the firm will produce
A. 8 units and earn economic profits of $278. B. 8 units and earn economic profits of $120. C. 7 units and earn economic profits of $238. D. 7 units and earn economic profits of $278.
The Fed has the least degree of discretion and the least to do under a policy rule setting
A) the growth rate of money. B) the growth rate of high-powered money. C) the Federal funds rate. D) nominal GDP.
Anything can be money if it acts as a:
a. medium of exchange. b. All of the answers must be correct. c. store of value. d. unit of account.
Which of the following accounts are included in the calculation of Balance of Payments?
(a) Financial Account, Savings Account, Capital Account. (b) Savings Account, Current Account, Financial Account. (c) Financial Account, Current Account, Capital Account. (d) Capital Account, Current Account, Savings Account.