Free entry and exit of firms is a characteristic of:
A. perfectly competitive industries.
B. all industries in the U. S. economy.
C. centralized economies.
D. industries in which firms are earning positive economic profit.
Answer: A
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Describe ways that governments can promote faster economic growth
What will be an ideal response?
The figure above shows the costs for the typical grower in the perfectly competitive turnip market. Currently, the price is $1,000 for a ton of turnips. In the long run, the market supply of turnips will ________
A) decrease and the price of a ton of turnips will fall to $600 B) increase and the turnip grower's economic profit will increase C) increase and the turnip grower's economic profit will decrease D) decrease and the price of a ton of turnips will rise to $1,200
Which of the following statements is (are) correct? There is agreement between the Keynesians and monetarists that
a. an increase in aggregate demand will increase both output and price in the short run. b. there is a trade-off between inflation and unemployment in the short run. c. in the long run, when the expected price level also has time to adjust, output will not be affected by changes in aggregate demand. d. All of the above e. None of the above
Which of the following stresses the inability of the government to improve short-run market outcomes?
A. Monetary policy B. New classical economics C. Supply-side policy D. Fiscal policy