The behavior expected in a competitive market includes
A. Little technological growth.
B. Aggressive behavior among competitors to control prices.
C. Very little entry and exit.
D. Marginal cost pricing.
Answer: D
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A trade surplus could be balanced by all of the following except
a. borrowing from domestic citizens. b. selling domestic assets to foreigners. c. borrowing from foreigners. d. selling foreign assets already owned by U.S. citizens to foreigners.
Long-run average costs are the same as long-run total costs
a. True b. False
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the
equilibrium quantity (Q) of X. Refer to the given information. Consumer expectations that the price of X will rise sharply in the future will: A. increase S, increase P, and increase Q. B. increase D, increase P, and increase Q. C. decrease S, increase P, and increase Q. D. increase D, decrease P, and increase Q.
Which of the following macroeconomic variables is the most seasonally procyclical?
A. Expenditure on services B. The real wage C. The unemployment rate D. Expenditure on durable goods