In perfect competition, an economic profit can be earned
a. only in the long run
b. only if the firm is efficient
c. only in the short run
d. never
e. always
C
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If demand is inelastic, an increase in the price of a good will cause total revenue to:
a. fall. b. remain constant since the decrease in quantity sold is exactly offset by the price increase. c. rise. d. rise if it is a normal good and fall if it is an inferior good.
An economic outcome is said to be efficient if the economy is
a. using all of the scarce resources it has available. b. conserving on resources, rather than using all available resources. c. getting all it can get from the scarce resources it has available. d. able to produce more than what is currently being produced without additional resources.
When a price control pushes the price of a good or resource below the market equilibrium, then
What will be an ideal response?
An increase in the demand for American-made goods will
A) increase the supply of dollars on the foreign exchange market. B) decrease the supply of dollars on the foreign exchange market. C) increase the demand for dollars on the foreign exchange market. D) decrease the demand for dollars on the foreign exchange market.