Which of the following is true for a perfectly competitive agricultural market with economic profits?
A. Firms will exit until normal profits are zero.
B. The profits will last indefinitely since there are barriers to entry.
C. No entry or exit will occur based on economic profits.
D. Firms will enter and existing firms will increase their production until economic profits are zero.
Answer: D
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The term "inverse demand curve" refers to
A) a demand curve that slopes upward. B) expressing the demand curve in terms of price as a function of quantity. C) the demand for "inverses." D) the difference between quantity demanded and supplied at each price.
If the U.S. imposed a quota on motorcycle imports from Japan it would lead to a _____ quantity imported, and a _______ quantity produced in the U.S.
A. lower; higher B. higher; lower C. lower; lower D. higher; higher
When the IS and LM curves are combined in the same diagram, the intersection of the two curves determines the equilibrium level of ________ as well as the ________
A) aggregate output; price level B) aggregate output; interest rate C) money supply; price level D) consumer expenditures; interest rate
According to the graph shown, if the economy were operating in autarky and then moved to free trade, the overall impact on surplus would be a net:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. gain of FGIJKL.
B. loss of FGIJKL.
C. gain of FGJK.
D. loss of FGJK.