Which of the following is not necessarily true in the long for a competitive industry?
a. Firms earn zero profits.
b. Firms set MC = MR.
c. A firm will not produce if the market price is less than their break-even price.
d. The long-run supply curve is more elastic than the short-run supply curve.
a. Firms earn zero profits.
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The benefits of economic growth are ________, while the costs of economic growth are ________.
A. increased output per person; less future consumption B. increased output per person; too small for concern C. more current consumption; less future consumption D. increased output per person; the consumption sacrificed in exchange for capital formation
A college student working in a minimum-wage job has a __________ opportunity cost of __________ than a college dean
a. lower; market work b. lower; leisure c. higher; market work d. higher; nonmarket work e. higher; leisure
A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts. B. sell foreign currency resulting from the sale of a U.S. treasury bond. C. purchase foreign currency in order to import a BMW. D. purchase foreign currency in order to purchase a U.S. treasury bond.
Which of the following groups oversees and administers the Federal Reserve System?
a. The House of Representatives. b. The President's Council of Economic Advisors. c. The U.S. Treasury Department. d. None of these, the Fed is an independent agency.