Firms in competitive markets can only earn economic profits in the long run, once the market is in equilibrium
a. True
b. False
Indicate whether the statement is true or false
False
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After the American Revolution concluded, what did the English do?
(a) They withdrew all investments in colonial America. (b) They continued investing in colonial America. (c) They discouraged individuals in other countries from investing in colonial America. (d) They did none of the above.
A tax on the wages paid to an employee is called the:
A. payroll tax. B. personal income tax. C. corporate income tax. D. excise tax.
At its regular meetings, the FOMC decides to sell or buy government bonds, an action referred to as ______.
a. reserve requirement alterations b. open market operations c. discount rate management d. interest rate changes
Equity and property price bubbles are commonly associated with periods when:
A. financial asset prices reflect the book value of companies. B. financial asset prices are well above what seems to be a reasonable present value estimate of earnings. C. the earnings that companies report are overstated. D. financial assets are undervalued.