When an industry supply curve increases enough to erase economic profits,
a. weaker firms exit the industry
b. quantity demanded decreases, but only slightly
c. all firms in the industry incur economic losses
d. entry of new firms and expansion of existing firms stop
e. marginal revenue increases
D
You might also like to view...
In general, the IMF provides developing countries with:
A. loans and lets these countries decide how the loans will be used. B. technical advice but does not provide them with loans. C. loans, but only if the government adopts certain policies specified by the IMF in return. D. neither loans nor technical advice.
Assume that an economic boom occurs in the United States, so that the United States has a much higher growth rate than other nations. What will happen to the exchange rate of the U.S. dollar?
What will be an ideal response?
Economic takeoff:
A. occurs when development becomes self-sustaining. B. will eventually occur in all developing countries. C. typically occurs in the absence of foreign investment. D. has yet to occur in any developing country.
The CPI may overstate inflation for all the following reasons except
A. problems measuring changes in the quality of goods. B. changes in Social Security benefits. C. substitution by consumers towards cheaper goods. D. problems measuring the quality of services.