Where the monopolistically competitive firm in Figure 8.5 produces, it will:
A. make a positive economic profit.
B. suffer a loss.
C. make zero economic profit.
D. make a negative economic profit.
Answer: C
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The Economic Act of 1946 allowed the federal government to use discretionary fiscal policy to pursue economic prosperity
Indicate whether the statement is true or false
Return to the case of Jan, the hyperbolic discounter from the previous question. Suppose she can sign a contract that requires her to give up money equivalent to a loss of X utils if she does not undertake the action. Assume she does not behave consistent with her plans without this contract. How high would the contractual value of X have to be to prevent her inconsistency?
a. C – B/2. b. B. c. C. d. B + C.
Which of the following is a theoretically possible value for the 80/20 ratio?
A. -1 B. 1,000 C. 0.5 D. 0
Which of the following serves as an automatic stabilizer in the economy?
A. Interest rates B. Exchange rates C. The inflation rate D. The progressive income tax