In general, monopolistically competitive firms earn profits _____.
(A) Higher than oligopolies.
(B) Slightly above their costs in the long run.
(C) Well above their costs in the long run.
(D) About the same as oligopolies.
Ans: (D) About the same as oligopolies.
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In Germany, expected future income increased during 2010. This increase led to
A) a downward shift of the consumption function. B) an upward shift of the consumption function. C) a movement upward along the consumption function. D) no movement along the consumption function and no shift of the consumption function. E) a movement downward along the consumption function.
Equity and debt instruments with maturities greater than one year are called ________ market instruments
A) capital B) money C) federal D) benchmark
Unemployment resulting from normal turnover in the labor market is called: a. frictional unemployment. b. cyclical unemployment
c. structural unemployment. d. seasonal unemployment.
The theory of bounded rationality is consistent with which of the following?
A. It is irrational to follow principles such as "follow the leader." B. It always pays to be irrational. C. Our rationality depends on rules of thumb such as "you get what you pay for." D. None of our decisions are rational.