A sudden increase in the market demand in a competitive industry leads to
a. Losses in the short-run and average profits in the long-run
b. Above average profits in the short-run and average profits in the long-run
c. New firms being attracted to the industry
d. Both B&C
d
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If the Federal Open Market Committee decides to decrease the money supply, it will
a. sell government bonds. b. purchase corporate bonds. c. purchase government bonds. d. reduce interest rates.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
Money eliminates the need for a coincidence of wants in trading primarily through its role as a:
A. Unit of account B. Medium of exchange C. Store of value D. Medium of deferred payment
Representative democracy makes no sense from an economic point of view
a. True b. False