In competitive price-searcher markets, short-run economic losses will lead to
a. long-run economic losses.
b. the exit of firms from the market and the eventual restoration of zero long-run economic profits.
c. the entry of new firms into the market as old firms fail.
d. the entry of additional firms into the market, causing each firm to experience an increase in demand for its product.
B
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What is the participation rate if there are 125 million people in the labor force, 100 million people employed, and 25 million not in the labor force?
A) 83% B) 80% C) 75% D) 67%
A plastics factory emits water pollutants into a nearby river. The marginal private cost of producing plastics and the marginal external cost of the pollutants are both constant with respect to the quantity of plastics produced
If the demand for plastics is downward sloping, what happens to the socially optimal level of output and market price if the demand curve for plastics shifts rightward? A) Optimal price and quantity increase B) Optimal price increases, optimal quantity remains unchanged C) Optimal price remains unchanged, optimal quantity increases D) Optimal price and quantity remain unchanged
The pursuit of low unemployment rates must necessarily result in time-inconsistent government policies
a. True b. False Indicate whether the statement is true or false
All else equal, technological change will be more rapid if
a. the government enhances patent protection b. interest rates are lower c. the government increases research funding d. all of the above e. interest rates are higher