A perfectly competitive firm would be willing to remain in the industry in the long run at zero economic profit because
a. its total revenues would be positive.
b. accounting profit would be negative.
c. revenue is equal to all costs, including the opportunity cost of capital and labor.
d. its fixed costs would prevent it from leaving the industry.
c
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In the early 1960s, the discovery of the Phillips curve relationship caused economists and policy makers to think that they understood the trade-offs between: a. aggregate supply and aggregate demand. b. interest rate and investment. c. inflation and unemployment
d. monetary and fiscal policy. e. rule-making and discretionary policy.
The United States will always have unemployment
a. True b. False
A ptomaine poisoning scare causes a decrease in the demand for canned tuna fish. Everything else equal, the demand curve for aluminum cans will
a. become steeper. b. become flatter. c. fall. d. rise.
In terms of the production possibilities curve, inefficiency is represented by
A. All points inside the curve. B. A rightward shift of the curve. C. All points outside the curve. D. All points on the curve.