In competitive markets where firms are observed to be exiting the market, the firms that remain will obtain economic profits in the long run
a. True
b. False
Indicate whether the statement is true or false
False
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Today, Walt Disney World charges different customers different prices for admission. This pricing strategy is called
A) odd pricing. B) arbitrage. C) cost-price pricing. D) price discrimination.
By 1850, the single largest U. S. commodity export (in terms of value) was:
a. iron railroad tracks. b. wheat. c. cotton. d. slaves.
Refer to the given data. The commercial banking system has excess reserves of:
Answer the question on the basis of the following consolidated balance sheet of the
commercial banking system. Assume that the reserve requirement is 10 percent. All figures
are in billions and each question should be answered independently of changes specified in
any preceding ones.
A. $10 billion.
B. $5 billion.
C. $2 billion.
D. zero.