The monopolistic competitive firm in short-run equilibrium may experience economic profits that are
A) always zero.
B) greater than, equal to, or less than zero.
C) always positive.
D) always negative.
Answer: B
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What are the economic effects of a currency appreciation?
A. It will decrease aggregate demand and aggregate supply, so that output will certainly fall, and prices may fall as well. B. It will increase aggregate demand and aggregate supply, so that output will certainly rise, and prices may rise as well. C. It will increase aggregate demand and decrease aggregate supply, so that prices will certainly rise, and output may rise as well. D. It will decrease aggregate demand and increase aggregate supply, so that prices will certainly fall, and output may fall as well.
Generally, on a linear two-good production possibilities curve, the opportunity cost of the good measured on the vertical axis is:
A. one minus the opportunity cost of the good measured on the horizontal axis. B. the negative of the opportunity cost of the good measured on the horizontal axis. C. the reciprocal of the opportunity cost of the good measured on the horizontal axis. D. the absolute value of the slope of the production possibilities curve.
Answer the following statements true (T) or false (F)
1. In a cooperative type of enterprise, a shareholder has only one vote regardless of the number of shares held. 2. In the United States, marketing cooperatives are most commonly found in the agriculture industry. 3. There are no government-regulated markets in the U.S. economy. 4. The U.S. economy is a mixture of perfect and imperfect competition and regulated and nonregulated industries.
Any form of wealth held by a sole proprietor will be factored into the terms of the loans she receives because:
a. her liability is limited. b. her business is inseparable from her. c. her business is too small to bear investment risks. d. her investment decisions depend on her total output.