If all firms in a competitive industry experience an increase in marginal costs, then which of the following is most likely to occur in the short run?
a. Firms will enter the market.
b. Existing firms will expand production.
c. Firms will shutdown.
d. Firms will exit the market.
c. Firms will shutdown.
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Common ownership of resources such as land can be efficient as long as
a. people are honest b. government regulates resource use c. rules for resource use are clear in assigning rights and responsibilities d. penalties for misuse are severe e. all the above are required
The first element of a financial crisis is
a. inflation. b. a decline in confidence in financial institutions. c. a relaxation of rules and regulations that pertain to the financial system. d. a large decline in some asset prices.
When the C line is above the 45-degree line,
A. there is dissaving and consumption is greater than disposable income. B. there is dissaving g and consumption is less than disposable income. C. there is positive saving and consumption is greater than disposable income. D. there is positive saving and consumption is less than disposable income.
The wealthiest 10 percent of the population owns about
A) 15 percent of all the wealth in the United States. B) 50 percent of all the wealth in the United States. C) 75 percent of all the wealth in the United States. D) 95 percent of all the wealth in the United States.