In short-run equilibrium in a perfectly competitive market,
a. each firm earns an economic profit
b. each firm earns a normal profit
c. firms shut down if price exceeds average total cost
d. each firm takes consumers' marginal utility as given
e. peach firm takes the market price as given
E
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Refer to Figure 2-15. In the circular flow diagram, market K represents
A) product markets. B) households. C) firms. D) factor markets.
The demand for gasoline is more elastic in the long run than in the short run because
a. other prices are more likely to change in the long run. b. incomes tend to rise over time. c. people can buy new cars in the long run. d. cars have become more expensive over time.
The official unemployment rate can be criticized for both understating and overstating the true number of unemployed
a. True b. False Indicate whether the statement is true or false
China's pattern of economic growth can be characterized as:
a. Slow b. Labor growing rapidly relative to capital c. Rising capital labor ratios d. Rapid growth of capital e. Both c and d