Distinguish between a perfectly competitive firm and a monopolistically competitive firm on the basis of the long-run equilibrium price
What will be an ideal response?
A perfectly competitive firm charges a price equal to marginal cost in the long run, while a monopolistically competitive firm charges a price higher than marginal cost in the long run.
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An increase in the supply of capital, which is a substitute to labor, will lead to a decrease in the demand for labor
Indicate whether the statement is true or false
What has been the economic effect of U.S. immigration in the last two decades?
a. Wages for low-skill jobs have declined. b. Wages for low-skill jobs have increased. c. The supply curve for unskilled labor has shifted to the left. d. Demand for skilled and unskilled labor has increased.
Give a hypothetical example that shows how monetary policy could fail because of bad timing.
What will be an ideal response?
To reduce the outflow of dollars from the United States, we need to
A. lower the budget deficit and the trade deficit. B. raise the budget deficit and the trade deficit. C. raise the budget deficit and lower the trade deficit. D. lower the budget deficit and raise the trade deficit.