A firm ________ if it earns zero economic profit.
A. will leave the industry
B. earns a positive but below normal rate of return
C. earns exactly a normal rate of return
D. earns a negative rate of return
Answer: C
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What types of goods have downward-sloping Engel curves?
a. Normal goods only. b. Inferior goods only. c. Giffen goods only. d. All types of goods.
Other things the same, which of the following happens if the price level rises?
a. Money demand shifts rightward. b. Initially there is an excess demand for money in the money market. c. The interest rate rises. d. All of the above are correct.
The spot rate is the rate at which foreign currencies will be exchanged a specified number of days in the future
Indicate whether the statement is true or false
Through correspondent banking, large banks provide services to small banks, including
A) loan guarantees. B) foreign exchange transactions. C) issuing stock. D) debt reduction.