Which of the following accurately explains why short-run profits lead to zero economic profits in the long run?
a. Short-run profits causes supply to decrease, thereby decreasing price and making it equal to ATC.
b. Short-run profits causes supply to decrease, thereby increasing price and making it equal to ATC.
c. Short-run profits causes supply to increase, thereby decreasing price and making it equal to ATC.
d. Short-run profits causes supply to increase, thereby increasing price and making it equal to ATC.
c. Short-run profits causes supply to increase, thereby decreasing price and making it equal to ATC.
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Have Malthus' predictions about population growth come true?
A) no, because modern birth control has limited population growth in all nations B) yes, as evidenced by the famine and food shortages affecting every nation today C) no, because the world's food supply has grown much more rapidly than Malthus foresaw D) Yes. The world's food supply, measured by calories per person, continues to fall.
The most likely substitute good for cereal would be:
A. a bagel. B. milk. C. pizza. D. a hot dog.
When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information b. decisions are being moved to those with stronger incentives to make good decisions c. decisions are being moved away from those with more of the relevant information d. decisions are being moved to those with weaker incentives to make good decisions
Suppose that the U.S. government budget deficit decreases. What curves in the open-economy macroeconomic model shift? Explain why each curve shifts the direction it does