Rent is what entrepreneurs earn, but it is called profit to distinguish it from other forms of rent
Indicate whether the statement is true or false
F
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The curve that shows the relationship between net exports and the real exchange rate is:
A) upward sloping. B) horizontal. C) downward sloping. D) vertical.
If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning positive economic profits, the firm should anticipate ________.
A) the market equilibrium price to increase B) the market equilibrium price to decrease C) earning economic profits indefinitely D) the market supply to decrease
How people respond to fiscal policy:
A. is fairly mechanical and appears to conform closely to the predictions of macroeconomic models. B. depends on whether the fiscal policy is financed from borrowing or from budget surpluses. C. depends on their evaluation of the state of the economy and their expectations about the future. D. generally reveals consistent irrationality and poorly-formed expectations about the future.
Open market operations by the Federal Reserve System include
A) Purchasing government securities from banks and other depository institutions. B) Selling bonds to banks to expand their lending capacity. C) Buying or selling of government bonds by the BMOC. D) None of the above.