In the long run in a perfectly competitive industry
A) opportunity costs are negligible.
B) economic profits will be zero.
C) some firms will be experiencing economic losses.
D) only entrepreneurs will earn more than their opportunity costs.
Answer: B
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The economic philosophy that favors strict limits on imports and strong support for exports is called
A) zero sum. B) autarky. C) mercantilism. D) comparative advantage. E) absolute advantage.
Compared to the long-run absolute elasticity of demand, the short-run absolute elasticity of demand is
A) smaller. B) the same. C) larger. D) either smaller or larger, depending on other factors.
The absolute value of the slope of an indifference curve is called the:
a. marginal rate of transformation. b. transitivity slope. c. indifference rate of preference. d. marginal rate of substitution.
Income tax collections:
a. fall during periods of prosperity, thus increase federal budget deficits. b. rise during periods of prosperity, thus reduce federal budget deficits. c. fall during recessions, thus increase the problem of unemployment. d. rise during recessions, thus increase the problem of unemployment.