In long-run monopolistically competitive equilibrium, there can be
A. no economic profits, but losses.
B. neither economic profits nor losses.
C. economic profits or losses.
D. economic profits, but not losses.
Answer: B
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Employing the government budget diagram shown in Figure 5-1 above, assume that the economy is initially in equilibrium at point A. The movement A to D represents
A) an increase in government spending and/or a decrease in taxes. B) a decrease in government spending and/or an increase in taxes. C) a decrease in government spending and a decrease in taxes. D) an increase in government spending and an increase in taxes.
If you and your business partner are trying to increase your total revenue, and you want a lower price than she does, it could be because you think the relevant demand curve is more elastic than your partner does
a. True b. False Indicate whether the statement is true or false
Macroeconomic issues include all of the following EXCEPT:
A. regulation of natural monopolies. B. inflation. C. economic growth and living standards. D. economic interdependence among nations.
Holding money for the transactions motive implies the need to hold money for:
A. emergencies. B. speculation. C. spending. D. impulses.