The real cost of buying a market basket of 25 important commodities in 2011 compared to the cost in the 1845-1850 base period is:
A. Higher by about 100 percent
B. About the same or equal
C. Lower by about 50 percent
D. Higher by about 50 percent
C. Lower by about 50 percent
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Among the opportunity costs of a firm are all of the following EXCEPT
A) the owner's forgone wage. B) costs of resources bought in markets, such as labor. C) normal profits. D) economic profits.
In the monopolistic competition model, the attribute of free entry suggests that: a. all firms earn zero economic profits in the long run
b. some firms will be able to earn economic profits in the long run. c. some firms will be forced to incur economic losses in the long run. d. the market structure will eventually be characterized by perfect competition in the long run.
The price elasticity of demand for color printers is 1.6 and you would like to see the quantity demanded for color printers to increase by 32%. Then the percentage change in price should be:
A. 10%. B. 15%. C. 20%. D. 25%.
In the classical model, the aggregate supply curve is
A. upward sloping. B. downward sloping. C. vertical. D. horizontal.