Macroeconomics is concerned with the behavior of all of the firms in a particular industry, while microeconomics focuses on a single firm in the same industry
Indicate whether the statement is true or false
FALSE
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You own $10,000 in personal property, $2,000 in Company X stocks, $1,000 in U.S. Savings Bonds and have $500 in your checking account. If Company X goes bankrupt, the most you could lose is
A) $13,500. B) $11,500. C) $2,000. D) $500.
Earnings usually reflect a person's productivity. What are factors that cause differences in productivity across people so that earnings differ too?
What will be an ideal response?
_____ have faith in the free market (price) system that leads them to favor minimal government intervention
a. New Keynesian economists b. Traditional Keynesian economists c. Monetarist economists d. Traditional classical economists e. New classical economists
Under perfect competition, if some firms are taking losses in the short run, in the long run
A. equilibrium price will rise until all firms are earning zero economic profits. B. those firms will cut back their output until they get to the level at which marginal cost equals price. C. firms will leave the industry until all firms are making a profit. D. those firms will earn losses until demand increases.