Firms' profits or production do not increase in the long run because:
a. some factors of production are fixed in the long run.
b. all the factors of production are variable in the long run.
c. changes in factor costs completely offset any change in the price level.
d. there exists an excess capacity in the economy in the long run.
e. factor costs remain fixed in the long run.
c
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Imagine that Wingate National is a new bank, and that the legal reserve requirement is 10 percent. If it accepts a $1,000 deposit, then, before lending occurs, its excess reserve balance is
a. $0 b. $90 c. $100 d. $900 e. $910
A country's standard of living can be calculated by dividing the goods and services its people have by
A. social services. B. population. C. output. D. total production.
The purpose of the World Trade Organization (WTO) is to
A. Protect workers from foreign competition. B. Protect producers from foreign competition. C. Ensure that there are no losers as a result of free trade. D. Enforce the rules of free trade.
In economics, another term for satisfaction is
A. need. B. scarcity. C. utility. D. return.