In the long run in a perfectly competitive market, economic profit or loss is
a. the main determinant of total cost
b. the main driving force determining consumer preferences
c. the basis of all government policy
d. the main driving force behind economic change
e. expected to persist indefinitely
D
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The labor supply curve shows the relationship between the
a. wage rate and the total quantity of labor demanded by firms b. wage rate and the total quantity of labor supplied by individuals c. wage rate and the total quantity of labor supplied by firms d. wage rate and the total quantity of labor demanded by individuals e. marginal revenue product of labor and the marginal physical product of labor
The dollar value of GDP increased approximately 4 percent during the year, but real GDP fell 2 percent. Which of the following best explains this data?
a. The real capacity of the economy increased more rapidly than money output. b. In the international sector, there was a balance of trade deficit of approximately 2 percent of GDP. c. The inflation rate was approximately 6 percent during the year. d. The general level of prices rose approximately 2 percent.
What does purchasing-power parity imply about the real exchange rate? Explain what this means
Long-run increases in living standards, as measured by real GDP per person, are primarily the result of increases in:
A. government budget surpluses. B. the money supply. C. population. D. average labor productivity.