For a monopoly in long-run equilibrium, economic profits are likely to be
A. greater than zero.
B. zero
C. less than zero
D. predatory
Answer: A. greater than zero.
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With a monetary growth rule as proposed by the monetarists, during a recession the rate of growth of the money supply would
A) not change. B) increase. C) decrease. D) decrease or increase depending on economic conditions.
When people are fully informed about the choices that they and other relevant economic actors face, we say they:
A. have complete information. B. will always try to hide that information to gain advantage. C. will always be willing to go through with the transaction. D. have relevant information.
A firm's supply curve corresponds to
A) the marginal cost curve. B) the average total cost curve. C) the marginal cost curve above the minimum average variable cost curve. D) the average variable cost curve.
A movement along the production possibilities curve would imply that
A) the labor force has grown. B) productivity has increased. C) society has chosen a different set of outputs. D) productivity has declined because workers are demanding more leisure.