Which of the following statements is not correct about competitive firms?
a. In a long-run equilibrium, firms must be operating at their efficient scale.
b. In the short run, the number of firms in an industry may be fixed.
c. In the long run, the number of firms can adjust to changing market conditions.
d. In the short run, firms must be operating at a level of output where price equals average variable cost.
d
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A $300 billion decrease in both government spending and taxes will
A) decrease GDP by less than $300 billion. B) decrease GDP by more than $300 billion. C) not change the level of GDP. D) decrease GDP by $300 billion.
In the figure above, the ________ gap is equal to ________
A) recessionary; $1 trillion B) inflationary; $1 trillion C) recessionary; $12 trillion D) inflationary; $12 trillion E) recessionary; $13 trillion
The market for apples is an example of ________
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
In September 2010, the finance minister of ________ declared that the world was "in the midst of an international currency war" because of rapid appreciation in the value of the country's currency, the ________
A) England; pound sterling B) Germany; euro C) Japan; yen D) China; renminbi E) Brazil; Real