Assume that the market for soybeans is purely competitive. Currently, firms growing soybeans are experiencing economic profits. In the long run, we can expect this market's:
A. supply to decrease.
B. supply to increase.
C. demand to decrease.
D. demand to increase.
Answer: B
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When we describe stock prices as following a random walk, we mean that future changes in stock prices are
A) unpredictable. B) increasing. C) decreasing. D) constant.
A competitive firm Select one:
a. and a monopolist are price makers. b. and a monopolist are price takers. c. is a price maker, whereas a monopolist is a price taker. d. is a price taker, whereas a monopolist is a price maker.
To calculate the price elasticity of demand we divide
A) the average price by the average quantity demanded. B) the percentage change in quantity demanded by the percentage change in price. C) rise by the run. D) the percentage change in price by the percentage change in quantity demanded.
National income (NI) is calculated by adjusting GDP for:
a. corporate and personal income taxes. b. investment and net exports. c. depreciation. d. Social Security insurance contributions and transfer payments.