Which of the following is true for a monopolistically competitive firm in the long run?
a. The average cost curve of the firm lies below the marginal cost curve.
b. The firm earns zero economic profit
c. The demand curve of the firm coincides with the marginal revenue curve.
d. The firm earns positive economic profit.
b
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If the government uses stabilization policies to reduce inflation, the economy may have to suffer
A. higher rates of real GDP growth. B. higher rates of unemployment. C. lower rates of unemployment. D. higher rates of price level growth.
Explain how the United Nations uses the Human Development Index (HDI) to better measure the standard of living around the globe
What will be an ideal response?
Wealth is far more evenly distributed than income
Indicate whether the statement is true or false
If firms have rational expectations and if they set prices and wages on this basis, then prices and wages
A. will never be set at market-clearing levels. B. will always be above market-clearing levels. C. will always be at market-clearing levels. D. will, on average, be set at market-clearing levels.