When a perfectly competitive firm is in long-run equilibrium:
A) its total revenues equal the sum of its total explicit and implicit costs costs.
B) the firm is operating at the minimum of its LRAC curve.
C) the firm is earning zero economic profit.
D) All of the above.
D
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Household savings rates:
A. vary enormously across countries. B. are remarkably similar across countries. C. seem to be similar for countries within the same continent. D. are impossible to compare across countries.
If the economy is operating at an unemployment rate above the full employment rate,
a. actual output is above potential output b. actual output is below potential output c. frictional unemployment has been eliminated d. structural unemployment has been eliminated e. actual output equals potential output
A government wants to reduce electricity consumption by 5%. The price elasticity of demand for electricity is -0.5. The government must ________ the price of electricity by ________.
A. raise; 1.0% B. raise; 0.1% C. lower; 0.5% D. raise; 10.0%
Technology
A) is constantly changing at every point along a production possibilities curve. B) is the recipe for combining land, labor, physical capital, and entrepreneurship to produce a good. C) does not have an effect on the amount of a good a society can produce with its given resources. D) only changes if resources change.