Assume the firms in a perfectly competitive market are initially incurring economic losses. An increase in supply would cause existing firms' economic losses to decrease
Indicate whether the statement is true or false
FALSE
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Which of the following groups believes that the economy will move toward and achieve equilibrium at full employment without inflation if government just keeps its hands off the economy?
a. classical school b. Keynesian school c. neo-Keynesian school d. rational expectations school e. supply-side school
Suppose an industry is composed of 10 firms. Each firm's share of total sales in the industry is 10 percent. If two of the firms merge, then the four-firm concentration ratio in the industry is
A. 50 percent. B. 45 percent. C. 40 percent. D. unable to determine.
Private property rights are
A. a social cost. B. an externality. C. exclusive rights of ownership. D. property that is owned by everyone and therefore by no one.
Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services
Indicate whether the statement is true or false