Since most firms use a stable markup, prices will remain stable over long periods of time
a. True
b. False
B
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Economic theory shows that the current account deficit is always equal to the capital account surplus. This means that
A. the federal budget must always be in balance. B. when a country exports more goods and services than it imports, it also imports assets equal to the difference. C. current account deficits should be avoided. D. trade deficits tend to be eliminated automatically.
If most firms in an industry are earning a 7 percent rate of return on their assets, but your business is earning 9 percent, your rate of economic profit is
a. minus 2 percent. b. 2 percent. c. 9 percent. d. 16 percent.
During 2001-2011, what happened to the federal budget deficit?
What will be an ideal response?
A perfectly competitive firm in the long run earns:
A. zero economic profits and zero normal profits. B. positive normal profits but zero economic profits. C. positive economic profits but zero normal profits. D. positive economic profits and positive normal profits.