Which of the following is true?
a. Monopolists, monopolistically competitive firms and perfectly competitive firms all earn positive economic profits in the long run.
b. Monopolists, monopolistically competitive firms and perfectly competitive firms all earn zero economic profits in the long run.
c. Only monopolists and monopolistically competitive firms, but not perfectly competitive firms, can earn positive economic profits in the long run.
d. Monopolists, monopolistically competitive firms and perfectly competitive firms can potentially all earn positive economic profits in the short run.
d
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A proponent of supply-side economics would advocate
A. reducing income taxes on saving. B. reducing tax credits for research and development. C. eliminating the depreciation allowance. D. increasing the corporate income tax.
Many beaches have a lifeguard on duty during the summer but not during the winter. The most likely explanation for this is that:
a. the marginal cost of having a lifeguard on duty varies over the year and tends to be lower during the summer. b. the marginal benefit of having a lifeguard on duty is higher during the summer when more people are at the beach. c. people understand that if you go swimming at the beach during the winter, you do so at your own risk. d. there is no danger of drowning at the beach during the winter.
If there is a technological advance that lowers the cost of producing x-ray machines, then we can say that the
A. quantity supplied of those machines will go up. B. quantity demanded for those machines will increase. C. demand for those machines will shift right. D. quantity supplied of those machines will decrease.
The nominal exchange rate:
A. is a synonymous term for the swap rate. B. is the amount of one country's goods that could be obtained with a basket of goods of another country. C. is the rate that one can exchange the currency of one country for the currency of another country. D. is always expressed as units of a foreign currency per U.S. dollar.