As new firms enter a competitive price-searcher market, profits of existing firms
a. rise and product diversity in the market increases.
b. rise and product diversity in the market decreases.
c. decline and product diversity in the market increases.
d. decline and product diversity in the market decreases.
C
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Total economic profit is
A) total revenue minus total opportunity cost. B) total revenue divided by total cost. C) marginal revenue minus marginal cost. D) marginal revenue divided by marginal cost.
Just before, during, and after the recession of 2007-2009, net exports in the United States
A) fell, but remained positive. B) fell and remained negative. C) rose and became positive. D) rose, but remained negative.
A wave of bank failures in the United States
A) occurred in the 1970s. B) occurred from the early 1980s to the early 1990s. C) occurred from late 1980s to the mid 1990s. D) has been ongoing since the late 1980s.
In 2005-2006, the Fed increased interest rates in an attempt to halt inflation. What was the most likely effect of raising interest rates on velocity?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to saving accounts.