Which of the following statements about the monopolistically competitive market, in the long run, is true?
a. The resources are efficiently utilized.
b. The firms make above-normal profit in the long run.
c. The marginal-revenue curve coincides with the demand curve facing the firm.
d. The firms produce the output level that is less than the output corresponding to the minimum of average total cost.
e. The firms operate on the upward-sloping portion of the long run average cost curve.
d
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If the initial distribution of labor and capital is Pareto optimal, which of the following statements is TRUE?
A) It is possible to reallocate labor and capital across industries so as to increase the production of one good without decreasing the production of another good. B) It is possible to reallocate labor and capital across industries so as to increase the production of one good, but only by reducing the production of another good. C) It is possible to reallocate labor and capital across industries so as to increase the production of every good. D) none of the above
In this economic growth and production possibilities curve, how much more food can a country produce on the new curve compared to the old curve if it produces no housing on either one?
a. 7 units
b. 10 units
c. 40 units
d. 80 units
The monetary aggregate, M1, increases when
A) an individual cashes a check written by a business. B) an individual purchases clothes with a debit card. C) an individual switches funds from a savings account to a checking account. D) an individual buys groceries with a credit card.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.