In an economy open to international trade ________
A) saving equals investment in equilibrium
B) saving is the difference between net exports and investment
C) saving equals investment as long as the economy has no exports
D) saving equals investment as long as NX=0
E) none of the above
D
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Which is the least common type of business?
A) sole proprietorship B) corporation C) partnership D) impossible to determine without further information
Monopolistic competition is inefficient because:
a. firms earn positive economic profits. b. the firms' marginal costs and marginal revenues are not equal. c. firms have excess capacity in the long run. d. entry is difficult.
If the market price in a competitive industry falls between a firm's AVC and ATC curves that firm is in the
A. short run making a profit. B. short run taking a loss. C. long run making a profit. D. long run taking a loss.
Which of the following terms describes the situation in which all resources are able to move to to highest-valued uses via voluntary exchange?
A) government intervention B) a market failure C) economic efficiency D) an externality