All of the following statements are true about pure competition in the long run, except:
A. Entry and exit of firms will push economic profits of firms in the industry towards zero
B. Entry and exit of firms will shift the demand curve facing the representative firm in the industry
C. The long-run adjustment in pure competition happens through shifts in the industry supply curve
D. The long-run adjustment in pure competition happens through shifts in the industry demand curve
D. The long-run adjustment in pure competition happens through shifts in the industry demand curve
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Frequently, a public good can be adequately provided by private action when its benefits are
a. concentrated among a small number of people. b. equally valued by everyone. c. widespread. d. greater than its costs.
Which of the following statements regarding member banks is true?
A) A majority of banks are part of the Federal Reserve System as well as a majority of bank deposits. B) A minority of banks are part of the Federal Reserve System, but they have a majority of deposits. C) A majority of banks are part of the Federal Reserve System, but they have a minority of deposits. D) A minority of banks are part of the Federal Reserve System as well as a minority of deposits
An decrease in the price of oil on the world market would cause aggregate output to
a. rise and the aggregate demand to rise. b. rise and the aggregate demand to rise. c. rise and the aggregate supply to rise. d. fall and the aggregate supply to fall.
Which of the following is not an example of a consumption good? a. video games
b. a television c. a tractor d. a trip to Hawaii