Firms in an industry cannot earn long-run economic profits if:
A. production costs for a given level of output are minimized.
B. there is free entry and exit of firms in the industry.
C. the number of firms in the industry is fixed.
D. fixed costs are zero.
Answer: B
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Referring to Figure 19.1, Mexican goods will become more expensive in the United States if the exchange rate goes from ________ to ________ pesos to the dollar
A) 10; 13 B) 11; 13 C) 12; 11 D) 12; 13
If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied
a. True b. False Indicate whether the statement is true or false
In a market economy, supply and demand are important because they
a. are direct policy tools used by government agencies to regulate the economy. b. illustrate when an market is in equilibrium, but they are not helpful when a market is out of equilibrium. c. can be used to predict the impact on the economy of various events and policies. d. All of the above are correct.
Which of the following is an example of frictional unemployment?
A. Recent graduate looking for a job. B. A mother is searching for a job and the kid has gone to college C. New Yorker moved to California. (WA) D. Computer program who turned down a job offer expect better job. E. All