Under rate of return regulation, firms earn
A. negative economic profits.
B. zero accounting profits.
C. positive economic profits.
D. zero economic profits.
Answer: D
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The idea underlying Adam Smith's "invisible hand" is that people tend to behave in ways that go unnoticed in society
Indicate whether the statement is true or false
The long-run aggregate supply curve is: a. upward sloping
b. downward sloping. c. vertical at full-employment real GDP. d. horizontal at full-employment real GDP.
Open market operations have their initial effect on bank
a. lending. b. reserves. c. profits. d. revenues.
The position of the long-run aggregate supply curve
a. is determined by resource usage and technology. b. is at the point where the unemployment rate is zero. c. shifts to the right when the money supply increases. d. is at the point where the economy would cease to grow.