In the long run when a perfectly competitive firm experiences negative economic profits,
A) firms exit the industry, the market supply curve shifts rightward, and the market price falls.
B) firms enter the industry, the market supply curve shifts rightward, and the market price falls.
C) firms exit the industry, the market supply curve shifts leftward, and the market price rises.
D) firms enter the industry, the market supply curve shifts rightward, and the market price rises.
C
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In an economy, newly-issued money originates from
A) the central bank. B) commercial banks. C) the sale of stocks and bonds. D) the deposits of individuals.
Which of the following statement(s) best describes scarcity?
a. Even if the budget constraint or a PPF shifts, scarcity remains—just at a different level. b. If the budget constraint shifts, scarcity disappears. c. If a PPF shifts, scarcity disappears. d. Scarcity is not dependent on the budget constraint or a PPF shift.
What is a union shop, and what is its purpose?
What will be an ideal response?
Nontradables are goods or services that:
A. are cultural specific and not typically traded for that reason. B. can't legally cross a country's borders. C. can't be taken from place to place very easily or at all. D. are not allowed to leave a country.