When monopolistically competitive firms advertise, in the long run
a. they will still earn zero economic profit.
b. they can earn positive economic profit by increasing market share.
c. the market price must fall.
d. the market price must rise.
a
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The Great Moderation describes the period
A) of relatively steady growth in real GDP between 1991 and 2008. B) of very slow growth in real GDP after 1990. C) between 2000 and 2008 when potential GDP did not increase. D) between 1990 and 2005 when real GDP grew significantly more slowly than did potential GDP. E) of relatively steady growth in real GDP after the year 2000.
If a firm is earning negative economic profits, it implies
a. That the firm's accounting profits are zero b. That the firm's accounting profits are positive c. That the firm's accounting profits are negative d. More information is needed to conclude about accounting profits
If the minimum wage law sets a wage floor below the equilibrium wage in the market for unskilled labor, then the
A) minimum wage will create a surplus of unskilled labor. B) minimum wage will create a shortage of unskilled labor. C) minimum wage will not impact the unskilled labor market. D) unskilled labor market will change, but we cannot be certain how.
Which of the following situations is sufficient to represent current demand for a car?
A. You have plenty of money to buy it, but you can't decide if you want a motorcycle or a car. B. You have enough money to buy it, and you are willing to spend the money on the car. C. You've decided you want a car, and you can possibly borrow the money from a bank. D. You want to buy a motorcycle and a car, and you'll have enough money for both in two years.