If firms in a monopolistically competitive industry are operating with positive economic profit, over time we would see
A. firms alter their advertising rates until they made at least normal profits.
B. some firms entering the industry, causing the demand curves of the existing firms to shift to the left.
C. some firms entering the industry, causing the market supply curve to shift to the right, lowering price.
D. some firms entering the industry, causing the demand curves of the existing firms to shift to the right.
Answer: B
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A decrease in the money wage rate increases ________ and an increase in the full-employment quantity of labor increases ________
A) the SAS and the LAS; only the SAS B) the SAS and the LAS; only the LAS C) only the SAS; the SAS and the LAS D) only the LAS; the SAS and the LAS
Countries with a high level of bureaucratic inefficiency tend to have low rates of real GDP growth because
A) of complications that keep capital goods from flowing to their most efficient use. B) of poor accounting practices when determining real GDP. C) of poor management skill development in companies. D) they facilitate capital goods development.
Based on this graph, the year with the highest surplus took place in the ______.
a. 1940s
b. 1970s
c. 1990s
d. 2000s
The table below shows the units of land and labor required to produce a unit of bread and cheese respectively in Country X. If Country X is a relatively land-abundant country, the opening up of free trade would cause the price of bread relative to cheese to 1 Unit of Bread1 Unit of CheeseLabor Input5 units20 unitsLand Input4 units10 units
A. initially rise but fall afterward. B. fall. C. stay the same. D. rise.