Firms in a perfectly competitive industry are earning economic losses. This is
A. a signal to government officials that a subsidy is needed for the firms in the industry.
B. a signal to entrepreneurs that additional resources should be brought into this industry in order to make it profitable.
C. a signal that the entrepreneurs are doing a poor job and should become workers for someone else.
D. a signal to entrepreneurs that some of the firms in the industry should exit and the resources of these firms should move into production of other goods.
Answer: D
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When there is a shift the aggregate supply curve caused by factors external to a nation's economy, it is called
A) government control. B) an economic anomaly. C) a supply shock. D) a trade imbalance.
The Fed buys securities and gives a bond dealer a check for the amount. After the check has cleared
A) reserves remain unchanged because the increase of reserves at the dealer's bank are offset by an increase in reserves at the Fed. B) reserves have risen by the amount of the check because the Fed clears the check by increasing the amount of the bank's deposits with the Fed. C) reserves have fallen by the amount of the check because the Fed clears the check by reducing the bank's deposits at the Fed. D) reserves have fallen by the amount of the reserves times the reserve ratio and the money supply increases by the difference between the amount of the check and the increase in the reserves.
"If the marginal product of labor curve slopes downward, then the average product of labor curve necessarily must slope downward." Explain whether the previous statement is correct or incorrect
What will be an ideal response?
According to UNESCO reporting, "Governments in North America and Western Europe invested the highest shares of national resources in education: 5.6 percent of GDP." As a result, we would expect ________, all else held constant. www.worldometer
info A) higher economic growth rates in these countries compared to other countries B) lower economic growth rates in the countries because fewer resources can be devoted to innovation C) lower research and development spending and lower economic growth unless the governments can raise taxes D) lower saving rates and slower economic growth