Which of the following is not a characteristic of a monopolistically competitive firm in long-run equilibrium?
A) Marginal revenue is equal to marginal cost.
B) Price is equal to average revenue.
C) The firm has excess capacity.
D) Price is equal to marginal cost.
Answer: D
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Which of the following transactions takes place in factor markets?
A) Henry receives a commission from his employer for selling a new automobile. B) Jake purchases 1,000 shares of stock in the Wal-Mart Corporation through his online trading account. C) Sam enters the winning bid on a grand piano at a local auction. D) Justin receives $30 in exchange for mowing his neighbor's lawn. E) Lucille receives a $500 check from the U.S. Social Security Administration.
The difference between the interest rate on loans to households and firms and the interest rate on completely safe assets is known as ________
A) the fed funds rate B) the discount rate C) asymmetric information D) the credit spread
The circular flow diagram shows the flow of resources between households and firms
a. True b. False Indicate whether the statement is true or false
GDP is a measure of an economy's:
A. domestic price level. B. domestic productivity. C. level of unemployment. D. total output.