When a perfectly competitive market is in long-run equilibrium, each firm's price equals
a. both marginal cost and average total cost
b. marginal cost, but exceeds average total cost
c. marginal cost, but falls below average total cost
d. average total cost, but exceeds marginal cost
e. average total cost, but falls below marginal cost.
A
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In the United States between 1981 and 2012, the
A) nominal wage rate increased more than the real wage rate. B) real wage rate increased more than the nominal wage rate. C) nominal and real wage rates increased the same amount. D) real and the nominal wage rates decreased the same amount. E) nominal wage rate decreased and the real wage rate increased.
An inferior good has an income elasticity of demand that is
A) positive. B) negative. C) positive but less than 1. D) zero.
When banks hold excess reserves, the size of the money multiplier
A) is less than the simple deposit multiplier would suggest. B) is greater than the simple deposit multiplier would suggest. C) is equal to the size of the simple deposit multiplier. D) becomes infinite.
A favorable balance of trade occurs when:
a. goods exports are greater than goods imports. b. goods imports are greater than goods exports. c. international trade is an increasing share of total output. d. the balance on capital account equals the balance on current account. e. unilateral transfers are positive.