Why may the debt crisis be only "sleeping" rather than "dead?"
What will be an ideal response?
Debt restructuring has postponed but not eliminated the need for eventual repayment, and
a small share of debt has actually been written off. It remains to be seen whether indebted economies have reformed sufficiently and will operate in an economic climate that enables the debts to be repaid. See section 13.4 (especially page 693).
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What the economist calls externalities create social problems
A) because opportunity costs are low when people live close to one another. B) only when the externalities are negative spillovers. C) partly because people have a limited ability to empathize. D) when people know about all the consequences of their behavior.
The full-employment rate of unemployment is zero
Indicate whether the statement is true or false
Monopolistically competitive firms
a. are guaranteed to earn short-run economic profit b. may earn short-run economic profits, although long-run economic profit is typically zero c. may earn economic profit both in the short run and in the long run d. earn zero economic profit both in the short run and in the long run e. can only earn an economic profit in the inelastic portion of their demand curves
The long-run average total cost (LRATC) curve
a. indicates the per-unit cost of producing various rates of output with a specific size of plant but variable levels of labor and technology. b. indicates the minimum per-unit cost that can be achieved at various output rates when the firm is free to choose among plant sizes. c. will be falling when diseconomies of scale are present and rising when economies of scale are present. d. is a U-shaped curve. e. is both a and d above.