A perfectly competitive firm in the short-run can earn:
a. positive economic profits.
b. negative economic profits.
c. zero economic profits.
d. all of these are possible
d
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The activist response to the monetarist platform says that
A) private spending may show some stability, but monetary or fiscal policy designed to stabilize it will just make things worse. B) private spending is stable partly because consumption spending is based on permanent income. C) even if prices are not completely flexible in the short-run, given time there is enough flexibility for the system to return to the natural level of real GDP. D) None of the above.
As real GDP falls,
a. money demand rises, so the interest rate rises. b. money demand rises, so the interest rate falls c. money demand falls, so the interest rate rises. d. money demand falls, so the interest rate falls.
A country has an absolute advantage over another in the production of widgets if it can produce
A. widgets using smaller quantities of resources than can the other country. B. more widgets than can the other country. C. widgets more efficiently than can the other country. D. widgets at a lower opportunity cost than can the other country.
Which of the following is a characteristic of oligopoly?
A) easy entry and exit B) many firms C) strategic dependence D) horizontal market demand curve