If short-run economic profits are greater than zero for firms in a monopolistically competitive market, in the long run we expect:
A. entry barriers to prevent competing firms from entering this market.
B. the demand curve for firms in the market to shift to the right.
C. the average cost of production to decrease.
D. the average cost of production to increase.
Answer: D
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Refer to the figure above. Calculate the revenue earned by the government when it imposes a tariff of $1 on chairs
A) $10 B) $20 C) $30 D) $40
How does collateral help to reduce the adverse selection problem in credit market?
What will be an ideal response?
The data lag is
A) the time it takes for policy makers to obtain data indicating what is happening in the economy. B) the time it takes for policy makers to be sure of what the data are signaling about the future course of the economy. C) the time it takes to pass legislation to implement a particular policy. D) the time it takes for policy makers to change policy instruments once they have decided on the new policy. E) the time it takes for the policy actually to have an impact on the economy.
Once wartime spending is under way and production is diverted away from household consumption items and private investment goods,
(a) real Gross National Product will likely fall. (b) the money supply will automatically increase. (c) inflation will likely rear its ugly head if productivity does not advance. (d) production and employment will fall.