Firms in a perfectly contestable market will earn higher profits than firms in markets that are not perfectly contestable.
Answer the following statement true (T) or false (F)
False
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The Obama administration believed that transfer payments to the unemployed would have a larger impact on aggregate demand than tax cuts
a. True b. False Indicate whether the statement is true or false
Figure 10-4
Figure 10-4 shows the industry's supply and demand curves in panel (1) and the cost curves of a firm in the industry in panel (2). At S2, the firm is
a.
going to shut down.
b.
incurring losses.
c.
earning zero economic profits.
d.
earning economic profit greater than zero.
Of the following, which country has the highest annual real GDP per capita according to the International Monetary Fund and World Bank?
A. United States B. China C. Italy D. Russia
A national campaign is asking for contributions of $1.00 per citizen to fund the building of the September 11th memorial in New York City. The total cost of the memorial is estimated to be $260 million. You decide not to contribute, because your contribution would be small relative to the total that it won't make any difference whether you contribute or not. This is an example of the ________ problem.
A. nonrival in consumption B. drop-in-the-bucket C. nonexcludable D. free-rider