Why do the perfectly competitive firms earn only normal profits in the long run?
a. Entry or exit is barred
b. Firms produce identical products
c. A large number of buyers and sellers exist in the market
d. Aggregate demand remains constant
e. There is free entry and exit of firms
e
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A person quits her job in order to spend time looking for a better-paying job. This type of unemployment is an example of
A) frictional unemployment. B) cyclical unemployment. C) seasonal unemployment. D) structural unemployment.
In the absence of government intervention, the marginal social cost of pollution abatement would equal its marginal social benefit
a. True b. False
Which of the following statements is true of a barter system? a. In a barter system, an individual offers one good or service to get another good or service. b. In a barter system, an individual offers money to get a good or service
c. In a barter system, an individual offers a good or service to get money. d. In a barter system, different kinds of money are exchanged for one another. e. In a barter system, all individuals are self-sufficient.
Decisions regarding purchases and sales of government securities by the Fed are made by the:
a. Discount Committee (DC). b. Federal Open Market Committee (FOMC). c. Federal Funds Committee (FFC). d. Federal Deposit Insurance Commission (FDIC).