In the long-run equilibrium in perfect competition, consumer surplus is
A) positive.
B) negative.
C) zero.
D) less than producer surplus.
A
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Since the 1950s,
A) U.S. business cycle fluctuations have becomes more volatile. B) U.S. business cycle fluctuations have not changed. C) U.S. business cycle fluctuations have become milder. D) the United States has not experienced a business cycle.
A firm that has negative economic profits has accounting profits that are
A) zero. B) positive. C) negative. D) indeterminate without more information.
If the Fed conducts an open market purchase of bonds, which of the following will happen?
a. The interest rate will decrease, the aggregate expenditure line will shift upward, and the aggregate demand curve will shift leftward. b. The interest rate will increase, the aggregate expenditure line will shift upward, and the aggregate demand curve will shift rightward. c. The interest rate will decrease, the aggregate expenditure line will shift upward, and the aggregate demand curve will shift rightward. d. The interest rate will decrease, the aggregate expenditure line will shift downward, and the aggregate demand curve will shift rightward. e. The interest rate will increase, the aggregate expenditure line will shift downward, and the aggregate demand curve will shift leftward.
Are we really rational consumers? If so, how do you explain the fact that every Thanksgiving many of us eat until we get sick! The answer must be that
a. the negative utility associated with being sick is greater than the positive utility of getting sick b. at the time of the eating, the utility of the turkey and stuffing minus the utility of the anticipated after-eating discomfort is still positive c. the utility of the turkey and stuffing at the time of eating minus the utility of the after-eating discomfort felt after the meal was eaten is still negative d. the total utility of eating the meal far outweighs the marginal utility of the discomfort felt after the meal e. the marginal utility of eating the meal far outweighs the total utility of the discomfort felt after the meal