With free entry
A) economic profits are possible over the long run.
B) economic profits are possible but only over limited amounts of time.
C) economic profits are not possible.
D) the cost of capital will not be covered.
B
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Equilibrium price and quantity are determined by the intersection of the demand and supply curves.
Answer the following statement true (T) or false (F)
When a business is set up as a partnership, the owners of the business face unlimited liability
Indicate whether the statement is true or false
When economists David Gould, G.L. Woodbridge, and Roy Ruffin examined the data on the relationship between increases in imports and the rate of unemployment, they concluded that
A) free trade leads to increased unemployment. B) there is not a casual link between increases in imports and the rate of unemployment. C) increases in imports always precede increases in unemployment by a period of 6 months to one year. D) increases in unemployment always precede increases in imports by a period of 6 months to one year.
Drivers with auto insurance being more likely to act carelessly is an example of:
A. asymmetric selection. B. adverse selection. C. information optimization. D. moral hazard.