Expectations of future prices affect demand but not supply
Indicate whether the statement is true or false
F
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In monopolistic competition, there are ________ barriers to entry and so firms in monopolistic competition ________ earn an economic profit in the long run
A) high; can B) high; cannot C) no; can D) no; cannot E) sometimes; can sometimes
At the equilibrium point in a perfectly competitive industry, the total surplus (the sum of the consumer surplus and producer surplus) will be at its maximum.
Answer the following statement true (T) or false (F)
Households and firms pay taxes to the government to:
a. increase their consumption spending. b. finance the country's import bill. c. increase their savings. d. improve their standard of living. e. finance government expenditures.
The principle of comparative advantage states that
a. whoever has a comparative advantage in producing a good or service also has the absolute advantage b. whoever has an absolute advantage in producing a good or service also has the comparative advantage c. whoever can produce a good or service using fewer resources than another individual has the comparative advantage d. total production of every good or service can be greater if individuals specialize according to their comparative advantage e. comparative advantage is maximized if each individual specializes according to his or her absolute advantage