Along a perfectly competitive industry's long-run supply curve
A) economic profits are positive.
B) economic profits are zero.
C) the market price is higher than the marginal costs of firms
D) the number of firms is constant.
Answer: B
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In a floating exchange rate system, the equilibrium exchange rate is determined
a. by the price of the foreign currency b. by the government of the country issuing the foreign currency c. by the interest rate in the country issuing the foreign currency d. by the Federal Reserve e. at the intersection of the demand curve and supply curve for the foreign currency
Adam Smith believed that through division of labor and specialization, producers could significantly increase their output. This is an example of a(n) ______.
a. aggregate b. resource c. correlation d. theory
The movement of herds according to seasonal rhythms is called:
a. transhumance b. desert nomadism c. geo-agricultural revolution d. global nomadism
Which of the following is a common mistake consumers commit when they make decisions?
A) They take into account nonmonetary opportunity costs but ignore monetary costs. B) They are overly pessimistic about their future behavior. C) They fail to ignore sunk costs. D) They sometimes value fairness too much.