If a firm can produce a product at a lower average cost than its competitors, it stands a better chance of earning economic profit
Indicate whether the statement is true or false
TRUE
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Monetarists advocate increasing the money supply by a constant rate year after year. True or False
Assume that when $100 of new reserves enter the banking system, the money supply ultimately increases by $625 . Assume also that no banks hold excess reserves and that the entire money supply consists of bank deposits. If, at a point in time, reserves for all banks amount to $500, then at that same point in time, loans for all banks amount to $2,625
a. True b. False Indicate whether the statement is true or false
Measured as a share of the economy, the size of the trade sector (exports plus imports) of the United States has
a. been increasing since 1980, but it declined during 1960-1980.
b. been relatively constant during the last four decades.
c. increased by about 10 percent during the last four decades.
d. approximately doubled since 1980 and tripled since 1960.
Suppose the wage rate in a certain industry rises, yet firms hire more workers. The best explanation of this is that labor:
A. demand fell. B. demand increased. C. supply fell. D. supply increased.