Assuming a horizontal long-run market supply curve, which of the following statements is (are) TRUE about competitive firms in the long run?
A) p = MC
B) p = AC
C) profit = 0
D) All of the above.
D
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Suppose a person calculates her permanent income by adaptive expectations. Last year's permanent income was 38,000, this year's actual income is 41,000, j = 0.30, and k = 0.86. What is her consumption expenditure this year?
A) 30,422 B) 12,174 C) 40,226 D) 38,774 E) 33,454
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were to open to trade, domestic producers would:
A. transfer surplus in area BCD to foreign producers. B. transfer surplus in area BC to consumers. C. receive additional surplus of BCD. D. lose surplus in area BCD to foreign consumers.
A forecaster used the regression equationQt = a + bt + c1D1 + c2D2 + c3D3and quarterly sales data for 1996 I - 2013 IV (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D1, D2 and D3 are dummy variables for quarters I, II, and III. 
Using the estimation results given above, the predicted level of sales in 2014 IV is ________ units.
A. 133.5 B. 132 C. 127.50 D. 125 E. none of the above
The U.S. trade deficit is most likely to be harmful in the future if:
A. U.S. citizens refuse to lend to foreigners as a result of it. B. U.S. citizens continue to accumulate foreign assets. C. U.S. production continues to exceed U.S. consumption. D. the inflow of financial capital associated with the current deficit does not finance productive investment.