In the long run when a perfectly competitive firm experiences negative economic profits
A) firms exit the industry, the market supply curve shifts rightward, and the market price falls.
B) firms enter the industry, the market supply curve shifts rightward, and the market price falls.
C) firms exit the industry, the market supply curve shifts leftward, and the market price rises.
D) firms enter the industry, the market supply curve shifts rightward, and the market price rises.
Answer: C
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OPEC has coordinated a reduction in supply that was
a. effective in insulating the members from the decrease in demand in the late 2000s. b. more profitable in the long run than in the short run. c. profitable in both the short run and the long run. d. more profitable in the short run than in the long run.
Suppose net domestic product is $4.8 billion, net income earned abroad is $0.7 billion, other business income adjustments net of indirect business taxes and transfers are $0.4 billion, and personal income taxes are $0.8 billion. Then, national income equals
A. $6.7 billion. B. $5.9 billion. C. $2.9 billion. D. $3.6 billion.
Answer the following statements true (T) or false (F)
1. Import tariffs benefit the consumers of the product involved. 2. If demand for a product is increasing, an import tariff is less restrictive than an import quota. 3. Export subsidies tend to hurt domestic consumers and benefit the foreign consumers. 4. A voluntary export restraint (VER) is similar to an import quota; except that the former benefits the foreign producers while the latter benefits the domestic producers. 5. Trade protection in most instances transfers wealth from consumers to domestic producers.
Disposable income represents ________
A) the income received by firms, e.g. corporations B) an increase in GDP C) a decrease in GDP D) the after-tax income received by the household