In the long run, firms in a monopolistically competitive market
A) usually earn positive economic profits.
B) always earn monopoly profits.
C) usually earn economic losses.
D) earn zero economic profits.
D
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When consumers are less confident about their jobs or incomes, they are more likely to
A) reduce purchases of durable goods than nondurable goods. B) increase consumption spending and decrease investment spending. C) reduce purchases of nondurable goods and increase purchases of durable goods. D) increase investment spending and decrease consumption spending.
With productive efficiency:
a. There is production of that particular mix of goods and services most wanted by society b. The available supplies of factors of production are variable in quantity and quality c. There is production of any particular mix of goods and services in the least costly way d. The state of technology, or methods used to produce output, constantly change
Which of the following statements is correct?I.If other factors are held constant, the level of employment in the economy determines real Gross Domestic Product (GDP).II.According to classical economists, only voluntary unemployment exists in the long run.
A. I only B. II only C. Both I and II D. Neither I nor II
Which of the following observations is true of the federal budget between 1960 and 2010?
a. The federal budget was in deficit in the early 1960s. b. Between 1960 and 1970 the federal budget deficit reflected a sharp increase. c. The federal budget was in surplus between 1970 and 1980. d. The federal budget deficit was the highest in the late 1990s. e. The federal budget deficit was lower than 600 billion dollars in 2010.