When a national security crisis forces the government to draft workers, this often results in price increases because the supply curves of most goods shift to the left. The people who suffer the price-increase consequences mostly are
a. those who are drafted
b. farm goods suppliers because they have less to supply
c. consumers of farm goods because farm goods are basic goods
d. the rich because they can afford to pay the higher prices, but they pay substantially more
e. the poor because they are priced out of the markets
E
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When a nation starts importing a good or service, domestic employment in that industry
A) decreases. B) stays the same. C) increases. D) might change, but more information about what else the country imports is needed to determine if employment increases, decreases, or does not change. E) might change, but more information about what the country exports is needed to determine if employment increases, decreases, or does not change.
In the long run, all firms in a monopolistically competitive industry make
A) negative accounting profit. B) zero accounting profit. C) an economic profit. D) zero economic profit.
In order to be successful in a market economy, entrepreneurs must
A) use only personal financial capital so they can avoid interest payments on borrowed funds. B) produce a good that consumers value less than the resources used to produce it. C) combine resources in a manner that increases their value. D) produce anything that consumers value, regardless of cost.
Real money balances
A. refer to the amounts of nominal money that individuals hold. B. are computed by deflating nominal money assets by the average price level. C. refer to the amounts of American money that an individual holds relative to gold or foreign currencies. D. are measured by currency holdings rather than holdings in checking accounts.