Historically, when a diverse set of stocks is held over a lengthy time period, stocks have yielded a ______ rate of return and the variation in the rate of return has been _______.
A) low; high
B) high; high
C) high; low
D) low; low
C) high; low
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Other things constant, a decrease in aggregate demand will
a. lead to a decrease in the demand for resources. b. cause an increase in the general level of prices. c. result in higher nominal wage rates. d. reduce the rate of unemployment.
In the absence of externalities, the "invisible hand" leads a market to maximize
a. producer profit from that market. b. total benefit to society from that market. c. both equality and efficiency in that market. d. output of goods or services in that market.
The process of entry and exit into a monopolistically competitive market continues until:
A. profits are positive. B. profits are zero. C. profits are negative. D. Any of these statements could be true.
Refer to the graph shown. What distance represents average profits?
A. BF B. AB C. FW D. AF