Anything that keeps new firms from entering an industry in which firms are earning economic profits.
Answer: Barrier to entry
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Equilibrium price and quantity are determined by the intersection of the demand and supply curves.
Answer the following statement true (T) or false (F)
Two emerging trends in 1990s macroeconomic thinking are that fiscal policy should be designed according to its ________ consequences and that monetary aggregates ________ useful in the conduct of monetary policy
A) short-run stabilization, are no longer B) short-run stabilization, continue to be C) long-run growth, are no longer D) long-run growth, continue to be
Refer to Figure 1A.2. If this consumer rents 60 DVDs, how many movie tickets will she purchase?
A. 0 B. 5 C. 10 D. 15
Refer to the graphs below. A price increase from $20 to $40 causes quantity demanded to decrease from 100 units to 50 units. Which graph best illustrates the demand for this good?
A. Graph A
B. Graph B
C. Graph C
D. Graph D