Which of the following statements is true?
A) A long-run competitive equilibrium can only be achieved in constant-cost industries.
B) When an industry achieves a long-run competitive equilibrium, industry output will not change in the future.
C) A long-run competitive equilibrium outcome is not economically efficient.
D) When an industry reaches a long-run competitive equilibrium, the typical firm in the industry breaks even.
Answer: D
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One drawback of deferred payments is that
A) employees may shirk anyway. B) employers might fire high achievers to avoid paying higher wages or bonuses. C) it is difficult to determine who are the good and who are the bad workers. D) employees have to work for the firm for a long time.
To close a recessionary gap, the Fed would
A) decrease the money supply. B) increase interest rates. C) sell bonds. D) increase the money supply.
Public goods are those that are consumed: a. only by those who have paid for them
b. only by the government that provides them. c. by the private group that funds them. d. by the paying and nonpaying public alike.
Which of the following will not shift the aggregate demand curve to the left?
A. Consumers become more optimistic about the future. B. Government spending decreases. C. Business optimism decreases. D. Consumers become pessimistic about the future.