In long-run equilibrium for a competitive firm, economic profits:
A. will be positive.
B. will be negative.
C. will be zero.
D. may be positive, negative, or zero.
Answer: C
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In 1971, the U.S. government banned cigarette advertising on radio and television. After the ban was imposed, an economist would predict that the price of magazine ads would
A. increase. B. decrease. C. increase, but only for cigarettes. D. not be affected by this ban.
If the current exchange rate is 0.65 British pounds per dollar, what is the dollar price of one British pound? If the exchange rate changes to 0.70 British pounds per dollar, what is the new dollar value of one British pound?
What will be an ideal response?
Refer to Scenario 12.2. This scenario describes a volunteer's dilemma
Explain what would likely happen if the pool of potential kidney donors increased from 2 friends (Jerome and Eliza) to 4 friends in terms of the likelihood of any one person volunteering to donate a kidney and in terms of the likelihood that no one at all would donate a kidney.
A banker operating under a system of fractional reserves
a. is exposed to potential bank runs. b. must keep a prudent level of reserves. c. must lend money carefully. d. All of the above are correct.