In the long run, what level of economic profits can a monopolistic competitor expect to receive?
A) positive
B) zero
C) negative
D) either negative or positive, depending on the demand for its product and its costs
B
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Supporters of minimum-wage legislation argue that:
A. workers deserve a basic standard of living. B. it would not be fair for firms to pay a wage that would leave workers struggling to escape poverty. C. a worker earning minimum wage should be able to live above the poverty line. D. All of these are true.
Given that firms change their prices infrequently, a business that has just raised its price will have a __________ relative price; over time as its price remains fixed its relative price __________
Fill in the blank(s) with correct word
Politics enters into the determination of economic policy in a negative way because:
A. it does not take market failures or failures of market outcome into account in formulating policy. B. political decisions do not always reflect the will of society. C. political decisions always reflect the will of society. D. it takes market failures and failures of market outcome into account in formulating policy.
The number of voting members on the Federal Open Market Committee is:
A. 12. B. 8. C. 7. D. 19.