Which of the following statements is TRUE about the economic profits earned by a monopolistic competitor firm in the long run?
A. Economic profits will be positive since the firm has a downward sloping demand curve.
B. Economic profits can be negative since there is so much competition in the market.
C. Economic profits can be positive since firms have some degree of monopoly power.
D. Economic profits will tend towards zero since positive profits will attract new firms into the industry.
Answer: D
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One way for governments to try and minimize the effects of structural unemployment is to:
A. provide information to unemployed people about which professions are experiencing rising demand for labor. B. subsidize retraining programs for unemployed workers to learn new skills. C. offer low-interest loans to unemployed workers to go back to school to learn new skills. D. All of these are ways the government can deal with structural unemployment.
Factors of production are
a. the mathematical calculations firms make in determining their optimal production levels. b. social and political conditions that affect production. c. the physical relationships between economic inputs and outputs. d. inputs into the production process.
Evaluate the following statement: "The gender pay gap provides evidence of widespread, severe, ongoing discrimination by employers and fellow workers."
After the price of Revlon nail polish increased, Jen stopped buying Revlon nail polish and started buying a cheaper brand of nail polish instead. This is called:
A. a decrease in the seller's reservation price. B. a decrease in the buyer's reservation price. C. the substitution effect of a price change. D. the income effect of a price change.