Suppose that firms in a competitive industry are earning positive economic profits. All else equal, in the long run, we would expect the number of firms in the industry to
a. increase.
b. decrease.
c. remain the same.
d. We do not have enough information with which to answer this question.
a
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Indicate whether the statement is true or false
Refer to the table above. Country A has absolute advantage in
A) Good X. B) Good Y. C) Neither X nor Y. D) Both X and Y.
In the open-economy ISLM model, net export is specified as a function of and exchange arte is specified as a function of
A) output; output. B) money supply; interest rate. C) exchange rate; interest rate. D) exchange rate; money demand.
The law of diminishing marginal utility states that total utility must eventually diminish in the consumption of any good or service
Indicate whether the statement is true or false