If a constant-cost, perfectly competitive industry experiences an increase in the demand for its product, we would expect
A) only the market price of the good to increase.
B) both the market price and quantity supplied to increase.
C) decreases in the market price, but increases in quantity supplied.
D) only the quantity supplied of the product to increase.
Answer: D
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If the unemployment rate is less than the natural unemployment rate, then
A) there is no frictional unemployment. B) cyclical unemployment is greater than zero. C) real GDP is less than potential GDP. D) real GDP is greater than potential GDP. E) frictional unemployment is negative.
An understanding of opportunity costs is important to understanding: a. how to calculate the total revenue generated by a firm. b. how to assess the economic profitability of a firm
c. How to calculate the tax liability of a firm. d. how accountants calculate accounting profits.
According to purchasing-power parity, if it took 1,100 Korean Won to buy a dollar this year, but it took 1,000 to buy it last year, then the dollar has
a. appreciated, indicating inflation was higher in the U.S. than in Korea. b. appreciated indicating inflation was lower in the U.S. than in Korea. c. depreciated indicating inflation was higher in the U.S. than in Korea. d. depreciated indicating inflation was lower in the U.S. than in Korea.
Without government regulation, natural monopolies never earn zero profit in the long run.
Indicate whether the statement is true or false