In the early 1900s, which of the following was not true?
A. Government intervention was commonly used to stimulate the economy.
B. Falling price levels appeared to limit an increase in unemployment.
C. Periods of high unemployment tended to be brief.
D. Say's Law seemed to work.
Answer: A
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Which of the following statements is TRUE about the economic profits earned by a monopolistic competitor firm in the long run?
A) Economic profits can be positive since firms have some degree of monopoly power. B) Economic profits will be positive since the firm has a downward sloping demand curve. C) Economic profits will tend towards zero since positive profits will attract new firms into the industry. D) Economic profits can be negative since there is so much competition in the market.
Which of the following is a true statement?
A. Fiscal policy has been expansionary every year since 2000. B. Fiscal policy has been contractionary every year since 2000. C. Fiscal policy swung from expansionary to contractionary in 2002. D. Fiscal policy swung from contractionary to expansionary in 2002.
A monopolistically competitive firm ________ where marginal revenue equals marginal cost.
A. maximizes revenues B. maximizes profits C. minimizes average total cost D. minimizes average variable cost
Unemployment and recessions are sometimes necessary to curb high inflation
Indicate whether the statement is true or false