Refer to Figure 12-15. Suppose a typical firm in a perfectly competitive market is earning economic profits in the short run. Which of the diagrams in the figure depicts what happens in the industry as it transitions to a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D
B
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Franklin buys a bottle of his favorite brand of Scotch every Friday on his way home from work. A new tax means the price of the bottle has increased. Franklin could buy fewer bottles of Scotch, but he might also choose to:
a. calculate how many utils he gets per glass from a bottle. b. create a demand curve that demonstrates ceteris paribus. c. switch to drinking bourbon. d. cut back on a different expense so he can pay the higher price of the Scotch.
To reduce the outflow of dollars from the United States, we need to
A. lower the budget deficit and the trade deficit. B. raise the budget deficit and the trade deficit. C. raise the budget deficit and lower the trade deficit. D. lower the budget deficit and raise the trade deficit.
Susan is planning to invest in one of four stock portfolios, and her financial advisor has given her details regarding the risk associated with each portfolio. Which of the following portfolios would you expect to have the highest average annual rate of return?
a. A portfolio with a standard deviation of 3%. b. A portfolio with a standard deviation of 6%. c. A portfolio with a standard deviation of 9%. d. A portfolio with a standard deviation of 12%.
Increasing wage inequality results when international trade leads to ________ wages for workers in exporting industries and ________ wages for workers in importing industries.
A. higher; lower B. higher; higher C. lower; no change in D. lower; higher