In the long run, perfectly competitive firms earn just enough revenue to
A) pay all fixed costs.
B) pay all accounting costs.
C) pay all opportunity costs.
D) attract entry.
C
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On a production possibilities frontier, 500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier, 300 pounds of apples and 1,300 pounds of bananas can be produced
Between these points, what is the opportunity cost of producing a pound of apples? A) 2 pounds of bananas B) 5/12 of a pound of bananas C) 0.5 of a pound of bananas D) 2 pounds of apples E) 100 pounds of bananas
Suppose there is a rise in the price level, but no change in the money wage rate. As a result, the quantity of labor demanded
A) increases. B) decreases. C) does not change because there is no change in the real wage rate. D) decreases only if the money wage rate also decreases.
In a market economy,
a. resources are distributed equally across the all possible uses. b. resources move to higher valued uses in response to changes in price. c. resource usage is independent of the price. d. most resources are distributed by the government. e. all of the above.
By definition, equity finance
a. is accomplished when units of government sell bonds. b. is accomplished when firms sell bonds. c. is accomplished when firms sell shares of stock. d. involves "fair" interest rates or dividend yields.