When entry barriers into a market are low, firms will tend to earn zero economic profit in the long run because
a. low entry barriers lead to rising costs.
b. profit-seeking entrepreneurs will not enter a market when entry barriers are low.
c. short-run profit attracts additional suppliers and drives down the market price.
d. consumers will refuse to pay more than the cost of producing a good once they find out the producer's per-unit costs.
C
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Nonunion wages should be modeled as
A) sticky, because they imitate union wages rather closely. B) sticky, because their contracts cannot contain COLA clauses. C) perfectly flexible, because wage contracts are illegal outside of unions. D) perfectly flexible, because workers willing to take the risks of full wage flexibility are precisely those workers who have rejected unionization.
When the long-run aggregate supply curve shifts right, it represents:
A. economic growth. B. pushing our economy beyond normal capacity. C. an unemployment rate of zero. D. negative inflation.
Jill and Daniel graduate from college in the same year in economics and physics respectively and start looking for jobs. They are competitors in the job market
Indicate whether the statement is true or false
Which one of the following statements is correct?
a. Policymakers have good intentions and therefore their proposals will create good outcomes. b. Potential secondary effects do not need to be considered when deciding whether to implement a new government program. c. A good outcome is guaranteed from a government program if it is created with good intentions. d. Government programs can be implemented with good intentions but can lead to undesirable outcomes because of unintended consequences.