The crucial aspect of competition among firms that leads to the condition of zero profits in the long run is
A. the number of firms in the industry is fixed.
B. free entry and exit of firms in the industry.
C. fixed costs equal zero.
D. all costs are at their least cost level.
B. free entry and exit of firms in the industry.
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According to the law of demand,
A) everything has its price. B) human wants are insatiable. C) people will do anything to obtain goods they want. D) there are no free goods. E) there is a negative relationship between the amount of anything people will purchase and the sacrifice that must make to obtain it.
"The number of species on earth is decreasing drastically and economic development is the main factor for the problem." Do you agree or disagree? Why?
What will be an ideal response?
The higher the interest rate, the greater the preference for liquidity
a. True b. False Indicate whether the statement is true or false
Prior to the Great Depression, classical economists believed that a recessionary downturn would be reversed by:
a. higher wages and prices. b. lower wages and prices. c. an expansionary monetary policy on the part of the Federal Reserve System. d. an increase in government spending that would stimulate aggregate demand.