In the long run, the entry of new firms into a competitive market is typically caused by
a. government regulation
b. technological innovation
c. inflation
d. economic losses
e. economic profit
E
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A cost-benefit analysis can be done to assess whether a nation should fix its exchange rate. Which of the following is NOT correct?
A) If market integration or symmetry increase, then the net benefits of a fixed exchange rate increase. B) If the net benefits are negative, economically speaking the nation should float. C) If the net benefits are positive, economically speaking the nation should float. D) If the net benefits turn negative, the nation should fix.
All of the following are reasons why people hold cash money except:
A. money can be used to buy goods. B. cash earns interest. C. to avoid losses from changes in bond prices. D. emergencies.
Full employment is the rate of employment that results when:
A. all the labor resources of the economy are employed full time. B. cyclical unemployment has reached its maximum. C. everybody who wants a job can find one. D. only frictional and structural unemployment are present.
Long-run equilibrium is characterized by zero profits in
A) monopolistic competition only. B) perfect competition only. C) both perfect competition and monopolistic competition. D) market structures in which there are barriers to entry.