If the market price rises above $6.30, the firm will earn:
a. positive economic profits in the short run.
b. zero economic profits in the short run.
c. negative economic profits and shut down.
d. negative economic profits in the short run but remain in business.
a. positive economic profits in the short run.
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If average labor productivity increases while population and the number of employed workers remain constant, then output per person:
A. increases. B. remains constant. C. decreases. D. may increase or decrease.
The change illustrated in the figure above is part of the transmission process of the Fed's monetary policy. As a result of the increase in the supply of loanable funds, aggregate demand ________, real GDP ________, and the price level ________
A) increases; decreases; falls B) decreases; decreases; falls C) increases; increases; rises D) increases; does not change; does not change E) None of the above answers is correct.
The impact of _____ unemployment is removed from official monthly unemployment figures
a. cyclical b. structural c. seasonal d. frictional e. involuntary
Which of the following possibly determines the allocation of goods and services in a free market?
a. The availability of raw materials b. The cost of production c. The level of government intervention d. The ability of the producers to produce a differentiated product e. The willingness and ability of consumers to pay for the product