Recall the Application about the costs involved in opening a restaurant to answer the following question(s).Recall the Application. If you are a franchise owner of a Sonic Drive-In restaurant, and it is in a monopolistically competitive market, you would expect in the long run to earn zero economic profits because:
A. you must compete against other restaurants that are similar to you, but not exactly the same.
B. barriers to entering the restaurant business are relatively low.
C. competition among restaurants is keen.
D. All of these are correct.
Answer: D
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Which statement is false?
A. Had the stock market not crashed and the rest of the world not gone into a depression, the U.S. depression might have been avoided. B. By the end of 1930 thousands of banks had failed. C. By the first week in March 1933 every single bank in the United States had shut its doors. D. None of the statements are false.
To calculate personal savings, you would need information on all of the following except:
a. personal disposable income. b. personal consumption expenditures. c. interest paid to business. d. government expenditure. e. personal transfer payments to foreigners.
According to the neoclassical growth model, economic growth in the steady state occurs because of
a. increasing populations, which increase the demand for consumption. b. exogenous increases in technology. c. international trade. d. active governments, which stimulate consumption through government spending. e. all of the above.
By 2011, how much had U.S. housing prices declined from their peak in 2006?
A) 2 percent B) 33 percent C) 40 percent D) 50 percent