The primary inducement for new firms to enter an industry is:
A. increased technology.
B. presence of economic profits.
C. low capital costs.
D. availability of labor.
Answer: B
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According to Simon Kuznet's (1958) research, the pattern of immigration in 1865–1914
(a) showed long swings but not the short-term business cycle fluctuations. (b) showed no long swings in the 1820–1860 period, but did show the business cycle. (c) showed both business cycle patterns and long swing patterns. (d) unlike 1820–1860, showed neither short cycles nor long swings, but was instead a steady surge after the Civil War ended.
Everything else equal, an increase in the demand for labor will
a. increase the real wage rate, employment, and real output b. reduce the real wage rate, employment, and real output c. increase the real wage rate but decrease employment and real output d. reduce the real wage rate but increase employment and real output e. increase the real wage rate and employment, but leave real output unchanged
The supply curve slopes upward when graphed against ________, because of ________
A) the price of the good; increasing marginal cost B) the price of the good; decreasing marginal cost C) income; increasing marginal cost D) income; decreasing marginal cost
In the bond market, the market equilibrium shows the market-clearing ________ and market-clearing ________
A) price; deposit B) interest rate; deposit C) price; interest rate D) interest rate; premium