If a firm in a monopolistically competitive market has a demand curve shifting to the right, it could be that:
A. negative economic profits are being earned.
B. firms are leaving the market.
C. the selling price is less than the average total cost of the firm.
D. All of these statements are true.
D. All of these statements are true.
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If the economy is in a recessionary gap, and the government attempts to balance the budget, the effect will be to
a. counteract the recession. b. worsen and prolong the recession. c. end the recession sooner. d. increase the level of real GDP.
Who participates in markets?
A. Business firms and consumers. B. Business firms. C. Consumers and government agencies. D. All of the choices are correct.
Who has the comparative advantage in the production of good B?
a. Alex
b. Adam
c. Both Alex and Adam
d. Neither Alex nor Adam
The CIO was formed as a(n)
A) closed shop. B) association of industrial unions. C) union shop. D) bilateral monopoly.