Firms in monopolistic competition can make an economic profit in the long run
Indicate whether the statement is true or false
FALSE
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Refer to Figure 3-5. At a price of $15
A) there would be a surplus of 4 units. B) there would be a shortage of 4 units. C) there would be a shortage of 2 units. D) there would be a surplus of 6 units.
If money income increases and the prices of products A and B both increase, then the budget line:
A. must shift to the right. B. must shift to the left. C. may shift either to the right or the left, or not at all. D. will no longer be tangent to an indifference curve.
Which of the following is NOT true about the equilibrium price?
A. the price where quantity demanded equals quantity supplied B. the price where the demand curve intersects the supply curve C. the price where a change in quantity supplied occurs D. the price where there is neither excess quantity demanded or excess quantity supplied
Which of the following categories of business cycle theories includes the theory of “real business cycles”?
a. physical b. monetary c. psychological d. spending and saving