When firms are neither entering nor exiting a perfectly competitive market,
a. total revenue must equal total variable cost for each firm.
b. economic profits must be zero.
c. price must equal average variable cost for each firm.
d. Both a and c are correct.
b
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A Giffen good has
A) a positive substitution effect. B) a negative income effect. C) a larger income effect than substitution effect. D) All of the above.
Amy discovers a way to produce water heaters so they are less expensive and use less natural gas. Amy's discovery is
a. physical capital. If Amy's discovery leads to lower natural gas prices, it has made natural gas less scarce. b. physical capital. If Amy's discovery leads to lower natural gas prices, it has made natural gas scarcer. c. technological knowledge. If Amy's discovery leads to lower natural gas prices, it has made natural gas less scarce. d. technological knowledge. If Amy's discovery leads to lower natural gas prices, it has made natural gas scarcer.
Which of the following is the most liquid store of purchasing power?
A. a dollar bill B. common stock C. gold D. real estate
If monetary policy is unchanged, the outstanding national debt will increase whenever
A. there is a deficit in the federal budget. B. Social Security tax receipts exceed Social Security benefit payments. C. there is a surplus in the federal budget. D. government tax receipts exceed government spending.