In perfect competition, as the long run approaches, economic profit will cause
a. the entry of new firms, shifting the market supply curve to the right
b. the emergence of powerful monopolistic corporations
c. inflation
d. technological innovation
e. government regulation
A
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Which of the following has a tendency to raise the unemployment rate?
A) reducing unemployment insurance in an economy B) offering wages at the market-clearing rate C) implementing a minimum wage in an economy D) reducing labor union membership in an economy
Potential GDP in the United States
A) declines over time. B) changes over a given business cycle. C) does not change over time. D) grows as the economy grows.
GDP, according to the income method, is the sum of:
a. wages, rent, interest, and profits. b. consumption, gross investment, depreciation, and net exports. c. depreciation, net factor income from abroad, and indirect business taxes. d. gross investment, wages, profits, rent, and indirect business taxes. e. consumption, profits, interest, rent, and net exports.
The growth of total output in the United States since 1929 has been:
A. rapid but with fluctuations B. rapid and smoothed. C. slow and steady D. slow with fluctuations