A firm operating in a perfectly competitive market may earn positive, negative, or zero economic profit in the long run
a. True
b. False
Indicate whether the statement is true or false
False
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Increasing the growth rate of GDP per capita and sustaining this growth rate in an economy can
A) increase the level of poverty. B) lower life expectancy. C) increase infant mortality. D) increase standards of living.
The demand for loanable funds curve is downward sloping because
a. as the interest rate falls business firms demand fewer loanable funds b. as the interest rate falls business firms demand more loanable funds c. as the interest rate rises business firms demand more loanable funds d. as the interest rate rises, the government demands more loanable funds e. as the interest rate rises, the government demands fewer loanable funds
Increases in the wage rates of coal miners and decreases in the price of natural gas would cause the price of coal to
A. rise, but the equilibrium quantity of coal would rise or fall depending on the magnitude of the changes. B. rise, fall, or remain unchanged depending on the magnitude of the changes, but the equilibrium quantity of coal would increase. C. fall, but the equilibrium quantity of coal would rise or fall depending on the magnitude of the changes. D. rise, but the equilibrium quantity of coal would fall. E. rise, fall, or remain unchanged depending on the magnitude of the changes, but the equilibrium quantity of coal would fall.
Under the Bretton Woods system of fixed exchange rates,
A. devaluations were frequent and small. B. devaluations were usually unforeseen. C. the IMF ensured that exchange rates were never changed. D. speculators could profit from an attack on a weak currency.