Why do some economists prefer government planning and financing of big-push development to private sector development? Because
a. private firms have a longer planning horizon than governments
b. governments have a longer planning horizon than private firms
c. private firms cannot collect taxes
d. it takes less initial start-up capital than any alternative development strategy
e. private firms create markets and government planning does not require market creation
B
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Which of the following best defines what money is now and what it has been in the past?
A) currency plus credit cards B) anything accepted as a means of payment C) currency D) anything used as a store of value E) currency plus checking deposits
Figure 11.3Figure 11.3 shows demands and costs for a monopolistically competitive firm. When the firm's demand curve shifts from D1 to D2 and to D3, in the long run we would expect:
A. the firm to earn a zero economic profit. B. the firm to charge a price equal to its marginal cost. C. the firm to increase its output level. D. the firm to produce at the lowest average cost.
A very small percentage of GDP tends to come from the service sectors in poor countries.
Answer the following statement true (T) or false (F)
Would a profit-maximizing firm continue to operate if the price in the market fell below its average cost of production in the short run?
What will be an ideal response?