In the long run, a monopolistically competitive firm earns small economic profits
a. True
b. False
Indicate whether the statement is true or false
False
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The law of increasing relative costs, depicted by the concavity of the production possibilities frontier, is most closely related to the
A. downward slope of the demand curve. B. upward slope of the demand curve. C. downward slope of the supply curve. D. upward slope of the supply curve.
The primary concern of the 1964 tax reform was _____
a. fiscal stabilization b. macroeconomic policy c. equity considerations d. efficiency considerations
When a perfectly competitive, well-functioning market is in equilibrium:
A. consumer surplus is minimized. B. producer surplus is minimized. C. total surplus is maximized. D. total surplus is zero.
At the core of the American trade problem is that
A. Americans spend too much on consumption. B. the dollar is too low. C. the Japanese are excluding American products by means of high protective tariffs. D. American manufacturers are too quality conscious and should instead concentrate on reducing costs.