Firms can earn economic profits even in the long run if
a. they charge the highest price possible
b. there is a cost-reducing technological change
c. there are significant barriers to entry
d. marginal revenue equals marginal cost
e. price is less than average variable cost at all rates of output
C
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The Council of Economic Advisers have found that skilled immigrants in the U.S. do all of the following, except:
A. Boost the technical capabilities of U.S. firms B. Pay less in taxes than they absorb in government services C. Make major innovative contributions in science, medicine, and engineering D. Augment the supply of health-care providers in the U.S.
The ________ hypothesis claims that differences in natural environment such as climate, and ecology are ultimately responsible for the major differences in prosperity observed around the world
A) climate B) location C) ecology D) geography
Securitization refers to
A) changing the mix in a financial portfolio away from stocks and toward bonds. B) selling directly to investors loans or securities that were formerly held by financial intermediaries. C) banks insisting that collateral be supplied on previously unsecured loans. D) reducing the exposure of a bank's portfolio to interest rate risk.
The wealth effect, interest-rate effect, and exchange-rate effect are all explanations for
a. the slope of short-run aggregate supply. b. the slope of long-run aggregate supply. c. the slope of the aggregate-demand curve. d. everything that makes the aggregate-demand curve shift.