Recall the Application about the costs involved in opening a restaurant to answer the following question(s).Recall the Application. If you are a franchise owner of a Sonic Drive-In restaurant, and it is in a monopolistically competitive market, you would expect in the long run to earn zero economic profits because:
A. you must compete against other restaurants that are similar to you, but not exactly the same.
B. barriers to entering the restaurant business are relatively low.
C. competition among restaurants is keen.
D. All of these are correct.
Answer: D
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Under the gold standard era of 1870-1914
A) central banks tried to have sharp fluctuations in the balance of payments. B) central banks tried to avoid sharp fluctuations in the current account of the balance of payments. C) central banks tried to avoid sharp fluctuations in the trade account of the balance of payments. D) central banks tried to avoid sharp fluctuations in the capital account of the balance of payments. E) central banks tried to avoid sharp fluctuations in the balance of payments.
There is a(n) ________ relationship between a nation's rate of growth in real GDP per capita and bureaucratic inefficiency
A) direct B) inverse C) proportional D) undefined
The effects of a per-unit tax imposed on sales of an industry's product would likely include
A) a lower product price at any amount of the product supplied. B) a leftward shift of the market supply curve for the product. C) a leftward movement along the market supply curve for the product. D) none of the above.
Aluminum cannot be produced without bauxite. Hence, the price elasticity of demand for bauxite by aluminum manufacturers will be
A) perfectly elastic. B) elastic. C) inelastic. D) unitary elastic.