If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning positive economic profits, the firm should anticipate ________.
A) earning a competitive profit in the long-run
B) earning economic profits indefinitely
C) the market equilibrium price to increase
D) the market supply to decrease
A) earning a competitive profit in the long-run
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The current account includes all of the following accounts except
A) net transfers. B) net exports. C) net financial derivatives. D) net factor payments.
If the average annual growth rate in real GDP for a nation during the last decade was 4 percent per year and the average annual population growth rate was 3 percent per year during the same period, then the average annual growth rate of per capita GDP was
A) 1.00 percent. B) -1.00 percent. C) 0.75 percent. D) 1.33 percent.
A budget deficit will be most inflationary if the aggregate
A. demand curve is very steep. B. demand curve is very flat. C. supply curve is very flat. D. supply curve is very steep.
Under a gold standard, as trade takes place and the foreign exchange market is affected, ______ tend(s) to restore equilibrium.
A) a change in the interest rate B) gold flows between nations C) currency flows D) changes in the value of gold