A firm operating in a perfectly competitive market earns zero economic profit in the long run but remains in business because the firm's revenues cover the business owners' opportunity costs
a. True
b. False
Indicate whether the statement is true or false
True
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As the marginal propensity to consume ________, the value of the multiplier increases
A) decreases slightly B) is constant C) increases D) decreases
The statement "Unemployment should be below 6 percent" is
A) a positive statement. B) a normative statement. C) a prediction. D) an assumption.
Campaign finance reform is usually proposed
a. as a way of reducing the power of special-interest groups b. as a form of rent seeking c. by economists as a way of implementing the median voter model d. by political action committees e. by the Justice Department
When the price level falls, people want to
a. hold more money and the quantity of aggregate goods and services demanded increases. b. hold more money and the quantity of aggregate goods and services demanded decreases. c. hold less money and the quantity of aggregate goods and services demanded increases. d. hold less money and the quantity of aggregate goods and services demanded decreases.