An empirical study determines that price exceeds marginal cost at the levels of output of firms in long-run equilibrium in the widget industry. The widget industry may therefore
A. be monopolistically competitive.
B. have firms whose goal is sales maximization.
C. have firms that act as price leaders.
D. All of the responses are correct.
Answer: D
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In the Solow growth model, the growth rate of real GDP per worker depends on the ________, and in the AK growth model, the growth rate of real GDP per worker depends on the ________
A) rate of depreciation; rate of dilution B) investment growth; rate of population growth C) growth rate of the capital stock; growth rate of the labor force D) rate of labor-augmenting technological change; national saving rate
About one worker in _____ is covered by a Cost of Living Adjustment Agreement (COLA).
A. two B. four C. seven D. ten
When a second firm enters a market, the original firm's profits decline because:
A. the original firm's price decreases. B. the original firm's ATC increases. C. the original firm's quantity decreases. D. All of these are correct.
Top-down management of an economy by the government has consistently
A. caused double-digit increases in GDP. B. created incentives and opportunities for businesses to expand. C. led to low rates of economic growth. D. produced exceptional results in economic growth.