When a perfectly competitive firm or a monopolistically competitive firm is making zero economic profit,
a. no firms will want to enter or exit.
b. some firms will want to leave.
c. some firms will want to enter.
d. market demand shifts to the left.
e. the price of the output will rise in the long run.
a
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Which of the following is an example of intraindustry trade?
A) Trading peanut oil for tractors B) Trading crude oil for automobiles C) Trading Nokia smartphone for Apple iPhones D) Trading jeans for cotton
From an initial steady state, suppose a government policy increases the national saving rate, causing the capital stock to start growing faster than the population. With (K/N) now rising, the Solow growth model goes on to say that (Y/N)
A) will rise only so far, to where the increased requirement for new capital matches the increased saving. B) will rise only temporarily, so long as the population growth rate remains constant. C) will rise and keep on rising, so long as the national saving rate exceeds the population growth rate. D) never does rise, since the government's policy does not affect either the population growth rate or the depreciation rate.
Credit cards perform the same functions as money as long as the card holder's bank account has sufficient funds to allow the transactions
a. True b. False Indicate whether the statement is true or false
Critics of the minimum wage argue that
a. labor demand is inelastic so firms can adjust production. b. too many older employees benefit at the expense of teenage workers. c. many minimum-wage earners are teenagers from middle-class families. d. All of the above are correct.