If firms are protected by substantial barriers to entry, short-run profits can turn into long-run profits
Indicate whether the statement is true or false
TRUE
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One reason for the fall in the natural rate of unemployment from 1980 to 2000 is
A) changes in the demographic composition of the work force. B) the decline in inflation. C) increased competition from foreign workers. D) the depreciation of the dollar relative to foreign currencies.
Barometric price leadership can occur when oligopolistic firms
A) compete on the basis of differentiated products. B) want to avoid price competition and violating antitrust laws. C) try to enforce cartel agreements. D) All of the above
Labor productivity, measuring the output per worker
a. increases with increases in technology b. decreases with increases in technology c. increases with increases in capital stock d. is the same as the capital labor ratio e. is the same as the capital output ratio
Which of the following would NOT cause a real business cycle?
A) a sustained change in the price of oil B) a change in the money supply C) a change in technology D) a change in the composition of the labor force