Refer to Figure 26.4 for a monopolistically competitive firm. If the firm currently faces Demand2 and MR2, then it will earn
A. A negative economic profit, and firms will exit the industry.
B. A positive economic profit, and firms will enter the industry.
C. A positive economic profit, and firms will exit the industry.
D. Zero economic profit, and neither entry nor exit will occur.
Answer: D
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Which of the following will NOT cause a leftward shift in the Long-Run Aggregate Supply curve?
A) a reduction in the amount of capital B) a reduction in government spending C) a reduction in the amount of oil D) a net outflow of human capital
Refer to Figure 22-3. Technological change is shown in the figure above by the movement from
A) B to E. B) B to D. C) B to C. D) B to A.
Which of the following groups oversees and administers the Federal Reserve System?
a. The House of Representatives. b. The President's Council of Economic Advisors. c. The U.S. Treasury Department. d. None of these, the Fed is an independent agency.
The fees paid to a mutual fund manager is called:
a. fund fee. b. service fee. c. load. d. dividend. e. agency fee.