Which of the following firms will eventually reach zero economic profits?
a. The loss taken by VCW, Inc. causes suppliers to exit the industry and the market supply curve to shift left.
b. The profit made by Median Enterprises causes suppliers to enter the industry and the market supply curve to shift right.
c. TransFit, Inc.’s stable performance has no effect on the market supply curve.
d. GlobalLink, Ltd.’s poor performance causes suppliers to exit the industry and the market supply curve to remain stable.
b. The profit made by Median Enterprises causes suppliers to enter the industry and the market supply curve to shift right.
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Suppose monetary neutrality holds and velocity is constant. A 4 percent increase in the money supply
a. increases the price level by more than 4 percent. b. increases the price level by 4 percent. c. increases the price level by less than 4 percent. d. increases real GDP by 4 percent.
The unemployment rate in an economy is 6%. The total population of the economy is 290 million, and the size of the civilian labor force is 150 million. The number of unemployed workers in this economy is:
A. 6 million B. 9 million C. 12 million D. 24 million
Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the nation of Omegalon. The charge of dumping electric lawnmowers in the Omegalon market means that Alphonia was accused of
A) selling faulty electric lawnmowers in Omegalon. B) discarding electric lawnmowers which would not sell in their home country. C) selling electric lawnmowers below cost or below domestic prices. D) selling counterfeit-branded electric lawnmowers in Omegalon.
Assume a fixed demand for money curve and the Fed increases the money supply. The result is a temporary:
a. excess quantity of money demanded. b. excess quantity of money supplied. c. new equilibrium interest rate. d. decrease in the demand for loans.