If a perfectly competitive industry is in long-run equilibrium, firms maximize profits, and the process of entry and exit results in
A. all firms producing where P = MC = AC.
B. a left shift in the industry supply curve.
C. a few firms earning economic profits.
D. the price falling to the point where MR > MC.
Answer: A
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Which of the following statements about the United States is (are) correct?
i. The labor force is larger than the number of employed people. ii. The labor force is larger than the number of unemployed people. iii. The number of unemployed people is larger than the number of employed people. A) ii only B) iii only C) ii and iii D) i and ii E) i, ii, and iii
The level of aggregate supply in the long run is not affected by
A) changes in technology. B) changes in the price level. C) changes in the capital stock. D) changes in the number of workers.
One problem with using market values to measure GDP is that
A) you cannot compare completely heterogeneous goods by using their dollar values. B) some useful goods and services are not sold in markets. C) prices for some goods change every year. D) market values of exported goods are usually priced in foreign currencies.
According to the Law of One Price, if two countries produce an identical good, assuming transportation costs and trade barriers are not an issue ________
A) the value of the currency in both countries should rise B) the value of the currency in both countries should fall C) the price of the good should be the same in the two countries D) the value of the currency in one country will rise by the same amount that the value of the currency in the other country falls