The above figure shows the demand and cost curves for a firm in monopolistic competition. In the figure, the firm makes an economic profit of
A) $0.
B) $20.
C) $40.
D) $120.
C
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The economy is at the equilibrium shown as point a in the above figure. To restore the economy to potential GDP, the Fed should
A) buy government securities and thereby increase aggregate supply. B) sell government securities and thereby decrease aggregate demand. C) buy government securities and thereby decrease aggregate demand. D) buy government securities and thereby increase aggregate demand. E) sell government securities and thereby increase aggregate demand.
In international trade, one country's gain is another country's loss
a. True b. False Indicate whether the statement is true or false
If a third party pays for an individual to consume a good, how is the decision making of consumers affected? How does this affect the actions of suppliers?
Which of the following is the primary reason for the current and impending shortfalls in Social Security funding?
A. Massive increases in Social Security retirement benefits. B. Reductions in payroll taxes used to fund Social Security. C. Baby boomers moving into retirement age in large numbers. D. High unemployment rates among Millennial workers.