Perfectly competitive firms are earning economic profits at a market price of $5 and an average total cost of $4. If new firms enter and do not affect the cost for all firms, the market price will ________ until it reaches ________.
A) increase; $4 B) fall; $4 C) increase; $5 D) fall; $5
B) fall; $4
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The "Okies" were associated with each of these EXCEPT
A. the Dust Bowl. B. John Steinbeck's The Grapes of Wrath. C. the Great Depression. D. the rust belt.
The Social Security tax is an example of an automatic stabilizer
Indicate whether the statement is true or false
Which of the following would not shift a market labor supply curve to the left?
a. an increase in the wage paid to workers in a competing market b. labor-saving technology c. a change in worker tastes so that workers want to retire earlier d. an increase in immigration
In general, the IMF provides developing countries with:
A. loans and lets these countries decide how the loans will be used. B. technical advice but does not provide them with loans. C. loans, but only if the government adopts certain policies specified by the IMF in return. D. neither loans nor technical advice.