The demand curve faced by a perfectly competitive industry
A) slopes upward.
B) slopes downward.
C) has no slope.
D) is horizontal.
Answer: B
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The first factories in the US were developed within the __________ industry
a. iron smelting b. grain milling c. boot and shoe d. cotton textile
Figure 10-2
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Figure 10-2 shows demand and short-run cost curves for a perfectly competitive firm. In the short run, this firm would
A. earn positive economic profits. B. earn economic losses. C. go out of business. D. Cannot be determined with the information given.
In the aggregate expenditures model, equilibrium occurs if:
a. aggregate expenditures (AE) are greater than GDP. b. aggregate expenditures (AE) are less than GDP. c. there is no unplanned inventory depletion or accumulation. d. consumption equals investment.
Subprime mortgages are mortgage loans:
A. made to borrowers with higher than average credit scores. B. made to borrowers with low credit scores. C. that have less than prime interest rates. D. made at lower than general market interest rates.