If all existing firms and all potential firms have the same cost curves, there are no inputs in limited quantities, and the market is characterized by free entry and exit, then the long-run market supply curve
a. is horizontal and equal to the minimum of long-run marginal cost for each firm.
b. must slope downward.
c. must slope upward.
d. is horizontal and equal to the minimum of long-run average cost for each firm.
d
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Christine works as a receptionist in an office. She is not supposed to use the Wi-Fi connection provided by the company to access social-networking Web sites
However, she often uses the Wi-Fi to access these Web sites because her browsing activities are not monitored by her employer. This is an example of ________. A) adverse selection B) moral hazard C) a positive externality D) a free-rider problem
Technological changes that increase the productivity of skilled workers relative to that of unskilled workers are referred to as:
A) skill-biased technological changes. B) labor-saving technological changes. C) unskilled-biased technological changes. D) labor-complementary technological changes.
Why do people refuse to pay for public goods?
What will be an ideal response?
Using the data in the above table, if exports = $1,150 billion and the private sector runs a surplus of $300 billion, the government sector will run
A) a surplus of $150 billion. B) a surplus of $450 billion. C) a deficit of $150 billion. D) a deficit of $450 billion.