Under monopolistic competition, profits cannot persist because new firms will be attracted to the market
a. True
b. False
Indicate whether the statement is true or false
True
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A 45-degree line on a graph with expenditures, E, on the vertical axis and production, Y, on the horizontal axis, represents
A) the line of disequilibrium levels of income. B) all possible equilibrium levels of production and expenditures. C) some of the equilibrium levels of production and expenditures. D) None of the above.
Time on the Cross views slavery as a system in which
(a) the slaves were quite happy, good-hearted and content with their condition. (b) the plantations were efficient operations with incentive systems providing slaves with some rewards for productive behaviors. (c) the slaves, because of the oppression and brutal conditions they faced, had the same type of attitudes as did the inmates of Nazi concentration camps during World War II. (d) the prospects of escape or resistance were so poor that slaves made few revolts against slavery.
Your firm is evaluating a potential investment in new machinery, but the manager in charge of the project uses an opportunity cost of capital that is too large. How does this error affect the projected net present value of the firm's investment?
A) NPV is overstated B) NPV is understated C) NPV is unaffected D) NPV changes from positive to negative
Explain what is meant by "new Keynesians" and discuss some of the research conducted in this area
What will be an ideal response?