If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits.
A. positive
B. break-even
C. negative
D. zero
Answer: A
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The figure above shows the market for iPods. Which of the following shifts the demand curve from D0 to D1?
A) a requirement that all students at universities have an iPod B) a decrease in the price of Zunes, a substitute for iPods C) a decrease in the price of iPods D) an increase in the price of iPods E) an increase in people's incomes
Unemployment related to job search is known as ________
A) cyclical unemployment B) frictional unemployment C) structural unemployment D) tertiary unemployment
The vertical portion of the AS curve
A. is a short-run phenomenon. B. shows national output rising with the price level. C. does not shift over time, due to economic growth. D. represents the maximum output level.
Twenty-five students in a class take a test for which the average grade is 75. Then a twenty-sixth student enters the class, takes the same test, and scores 70. The test average grade calculated with 26 students will
A. change from 75 but the direction is unclear. B. fall below 75. C. rise above 75. D. still equal 75.