In the long run, monopolistically competitive firms will not earn economic profits because
A) average total cost will shift up to meet the demand curve.
B) input prices will be bid up.
C) production will not be at minimum average cost.
D) new firms will enter the industry.
Answer: D
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The natural rate of unemployment includes
A) frictional and cyclical unemployment. B) frictional unemployment and structural unemployment. C) only cyclical unemployment. D) only unemployment due to layoffs and corporate downsizing.
When comparing the velocity of M2 (V2), with the velocity of M1 (V1), the evidence suggests that V2 has been __________ and V1 has been __________ over time
A) relatively predictable; relatively predictable B) relatively predictable; relatively unpredictable C) relatively unpredictable; relatively predictable D) relatively unpredictable; relatively unpredictable
When costs that vary with the level of output are divided by the output, you have calculated:
a. total changing cost. b. total fixed cost. c. average fixed cost. d. average variable cost.
Picture the production possibilities curve shifting out, year after year, but the shifts are not necessarily the same. This picture is at the heart of the _______ explanation of the twists, turns, and spurts of economic growth
a. market theorists b. housing cycle c. innovations cycle theorists d. real business cycle theorists e. internal cycle theorists