Monopolistically competitive firms ________ because in long-run equilibrium price is ________ marginal cost.
A. prevent the efficient use of resources; less than
B. use resources efficiently; greater than
C. prevent the efficient use of resources; greater than
D. use resources efficiently; equal to
Answer: C
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When government debt is financed internally, future generations will
a. inherit a higher tax liability without additional interest income. b. inherit neither higher taxes nor additional interest income. c. inherit both higher taxes and additional interest income. d. receive lower interest income and a lower tax liability.
When total revenue minus total cost is equal to zero, the firm is:
A. earning above-average economic profit. B. earning a normal profit. C. losing too much money to stay in business. D. earning abnormally low profits.
The time is March 2018. The United Kingdom (UK) committed to leave the European Union (EU) in March 2019. What are the issues the UK and the EU had to resolve for Brexit to be relatively smooth and orderly?
What will be an ideal response?
A tariff affects imports
A. by limiting quantity and raising price to a higher level. B. by reducing quantity demanded so that supply falls. C. by increasing supply, raising price, and reducing demand. D. by raising price and reducing quantity demanded.