Under conditions of perfect competition, if profits are being made,
a. new firms are attracted into the industry.
b. the market supply decreases.
c. average revenue increases.
d. new firms are excluded.
a. new firms are attracted into the industry.
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The figure above shows the relationship between the time a student spends studying and the student's GPA that semester. This figure shows ________ relationship between the time spent studying and the GPA
A) a positive, linear B) a positive but not linear C) a cross-sectionally trended D) a negative E) no
If we assume that government borrowing crowds out private investment, then future generations will have a smaller capital stock. Ricardo's view is that this will not be the case, because people are forward looking. Do you agree?
What will be an ideal response?
You earn $500 a month, currently have $200 in currency, $100 in your checking account, $2,000 in your savings accounts, $3,000 worth of illiquid assets and $1,000 of debt. You have
A) money = $300, annual income = $6,000, and wealth = $5,000. B) money = $2,300, annual income = $6,000, and wealth = $5,000. C) money = $300, annual income = $6,000, and wealth = $4,300. D) money = $200, annual income = $500, and wealth = $4,300.
Within the framework of the AD/AS model, if a long-run equilibrium is present in the goods and services market,
a. decision makers will have accurately forecast the current price level when they arrived at resource price and loanable funds agreements. b. the profit rates of the firms will generally exceed the competitive level. c. the actual rate of unemployment will be less than the natural rate of unemployment. d. output will exceed the economy's long-run sustainable output.