Entry into a perfectly competitive industry to occurs whenever:
A. accounting profit is equal to zero.
B. economic profit is equal to zero.
C. accounting profit is greater than zero.
D. economic profit is greater than zero.
Answer: D
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If the income elasticity of demand is negative, this means that the good is
a. an inferior good b. sold at a lower than equilibrium price c. provided by a monopoly producer d. provided by competitive producers e. a normal good
A large dam along the Tennessee River is a public good because ______.
a. it is excludable b. it is rival in consumption c. it belongs to the government d. it provides flood protection to everyone
The main difference between paper money and coins as forms of money is that
A. paper money issued by the Federal Reserve Board is backed by gold while coins are not. B. paper money serves as a unit of account while coins do not. C. the metal in coins is more durable than paper. D. the metallic content of coins makes them more acceptable as money.
Refer to Figure 7.1. Suppose the city passes an ordinance banning loud music, and this directly impacts Angus's legal ability to play his bagpipes. The payoffs in the lower-right cell of the payoff matrix would change to
A) 0, 0. B) 550, 100. C) 100, 550. D) The payoffs would not change.