If a competitive industry is neither expanding nor contracting, we would expect:
A. total revenue to be zero.
B. economic profits to be zero.
C. total opportunity cost to be zero.
D. more resources to flow to that industry.
Answer: B
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Indicate whether the statement is true or false
Use the graph to answer the following question:
If the market for investment is initially in equilibrium at point A, but then implementation of fiscal policy causes crowding out to occur, the equilibrium in the market will likely
A. remain at point A. B. move toward point B. C. move toward point C. D. move toward point D.
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Indicate whether the statement is true or false
The Western railroads had been granted vast amounts of land by the government. Consequently, they
(a) Held on to it tightly. (b) Produced a competitive market with homesteading. (c) Wanted to profit only from providing railroad services. (d) Hindered economic development by restricting new farms in the West.