Due to the entry and exit of firms in a monopolistically competitive market:
a. economic profits and economic losses are dissipated in the long run.
b. economic profits persist in the long run, but not economic losses.
c. economic losses will exist in the long run, but not economic profits.
d. both economic profits and economic losses exist in the long run.
a
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The ________ refers to the situation when people are promoted beyond their level of competence
a. Peter Principle b. Abernathy Principle c. Delaney Principle d. Suskind Principle
If the rational expectation theory is accurate, equilibrium real GDP will change in the short run: a. whenever the aggregate demand curve shifts
b. only if discretionary fiscal policy is used. c. only if there is a shift in aggregate demand that could not have been predicted from the information available to the public. d. only if discretionary monetary policy is used.
In Europe during the 14th century, the Black Plague killed 24 million people or close to 37 percent of the population. How would this affect the production possibilities curves for the countries of Europe at that time?
a. The production possibilities curves for these countries would have shifted outward. b. The production possibilities curves for these countries would have shifted inward. c. The production possibilities curves for these countries would have been unaffected. d. This would have been illustrated by a movement along the production possibilities curves for these countries, but it would not have shifted them.
Which of the following is not an interpretation of the "beauty premium"?
a. Beautiful workers are not willing to work for lower wages. b. Good looks are a type of innate ability causing the worker to be more valuable to the firm. c. The beauty premium is a type of discrimination. d. Beauty is an indirect measure of other types of ability.