An industry is expected to expand if firms in the industry are earning positive:
A. Normal profits
B. Economic profits
C. Accounting profits
D. Total revenues
B. Economic profits
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To measure the amount of credit actually extended through the Eurobanks, we use
A) the net size of the market. B) the gross size of the market. C) total deposits minus interbank activities D) Both A and C.
Everything else held constant, a monetary contraction is characterized by ________ output and ________ interest rates
A) rising; rising B) rising; falling C) falling; rising D) falling; falling
An increase in the price of a particular good, with all other variables constant, causes
a. a movement along a given supply curve to a lower quantity supplied b. a shift to a different supply curve with lower quantities supplied c. a movement along a given supply curve to a higher quantity supplied d. a shift to a different supply curve with higher quantities supplied e. no movement along a given supply curve unless demand also changes
If the price elasticity of demand for a good is 0.4, then which of the following events is consistent with a 2 percent decrease in the quantity of the good demanded?
a. a 0.8 percent increase in the price of the good b. a 2.4 percent increase in the price of the good c. a 5 percent increase in the price of the good d. a 8 percent increase in the price of the good