In a perfectly competitive market, when the price is below the minimum average total cost for all firms:
A. accounting profits will be positive.
B. firms will likely enter the market.
C. the price will eventually rise once enough firms have left the market.
D. economic profits will be equal to zero.
C. the price will eventually rise once enough firms have left the market.
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Refer to Cournot Problem. In the Nash Equilibrium, the deadweight loss will be
a. $300 b. $450 c. $600 d. $900
By designating Federal Reserve currency as legal tender, the federal government
A) has ensured that Federal Reserve currency will serve as money. B) has guaranteed that Federal Reserve currency may be exchanged for an equivalent amount of gold or silver. C) has mandated that Federal Reserve currency be accepted for payment of debts. D) has mandated that Federal Reserve currency be accepted by citizens of foreign countries in exchange for their countries' currencies.
The primary economic explanation as to why a world-renowned architect cannot attain the "superstar" status that an athlete or actor can attain is that
a. architects' services are not as highly valued by society as are the services of athletes and actors. b. only physically attractive people can become superstars, and it would be a coincidence if a highly talented architect were also physically attractive. c. government regulations place restrictions on the incomes of architects, but there are no such restrictions on the incomes of athletes or actors. d. it is impossible, currently, for an architect to supply his or her services at low cost to every customer.
As national income increases:
a) The average propensity to consume falls and gets nearer in value to the marginal propensity to consume b) The average propensity to consume increases and diverges in value from the marginal propensity to consume c) The average propensity to consume stays constant d) The average propensity to consume always approaches infinity