If a monopolistically competitive industry is earning short-run profits, new competitors will enter the industry in the long run and compete away those profits.
Answer the following statement true (T) or false (F)
True
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Why are Pigovian taxes preferred to regulatory policies as methods to remedy negative externalities?
Which of the following statements about U.S. exports and imports is true?
a. Exports comprise a higher percentage of GDP than imports do. b. Quotas serve to keep the ratio of exports to imports constant. c. Since 1960, exports and imports typically have not risen above 5% of GDP. d. Since 1960, both exports and imports have grown as a percentage of GDP.
Economic profit is always
A) greater than accounting profit. B) equal to accounting profit. C) less than accounting profit. D) equally likely to be either greater or less than accounting profit.
The primary reason why the Fed cannot systematically surprise the public with its monetary policy is
A. the presence of productivity shocks that generate real business cycles independent of the monetary side of the economy. B. the presence of propagation mechanisms within the economy. C. the presence of rational expectations among the public. D. the nonneutrality of money.