If the opportunity cost of capital is below the rate of return to capital in the perfectly competitive beauty salon industry,
A. resources will flow into the industry.
B. beauty salon owners must be earning negative economic profit.
C. the beauty salon industry cannot be in long-run equilibrium.
D. beauty salon owners must be earning negative marginal revenue at their current levels of output.
Answer: A
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Which of the following changes is observed when the Fed increases the federal funds rate? a. Inflation is brought to an immediate halt
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Think birth rate and growth in GDP per capita. A major reason that China adopted a one- child-per-family policy was that
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Advertising by the monopolist
A. is not done because the monopolist has the only supply of the product and doesn’t need to advertise. B. would have the effect of shifting its demand curve to the left. C. may lead to expanded production by the monopolist. D. makes no sense because there are no substitute commodities available to consumers.
If the consumer price index (CPI) was 125 at year-end of 2008 and 132.5 at year-end 2009, inflation during 2009 was
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