Which of the following is TRUE in perfect competition at long-run equilibrium?
A) P = ATC = MC = MR
B) ATC is minimized.
C) Economic profit is $0.
D) all of the above
D
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The menu cost theory states that
A) wages depend on the productivity of workers. B) economic agents quickly learn the likely responses of the Fed to changes in unemployment. C) the economy is characterized by perfect competition. D) prices are not fully flexible because it is costly for firms to change prices every time there is a demand change.
According to the liquidity premium theory, the yield curve normally has a positive slope because
A) short-term interest rates are expected to rise. B) term premiums rise as the time to maturity increases. C) risk premiums rise over time. D) long-term bonds are more liquid than short-term bonds.
Suppose the recipient of a kidney transplant has stated that she would prefer 5 years of perfect health to the 10 years she expects to live with her transplant. For this person, each of her remaining 10 years of life has a QALY value of
a. ½. b. 2 c. 5 d. 10 e. 50.
Cheap labor is the source of comparative advantages
a. True b. False Indicate whether the statement is true or false