If restrictions on entry and exit of firms are introduced in free markets, ________
A) all existing firms earn equal profits in the long run
B) existing firms incur equal losses in the long run
C) the market allocates resources efficiently
D) resources in the market are not allocated efficiently
D
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Refer to Goods X and Y. If the marginal rate of good X in terms of good Y is large, then the indifference curve will be
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. convex. b. concave. c. steep. d. flat.
Lizzie's budget line is shown in the figure above. Lizzie's real income in terms of magazines is ________ magazines
A) 5 B) 10 C) 15 D) 20
According to the text, most real world market structures are mainly
a. monopoly and perfect competition b. monopoly and oligopoly c. perfect competition and oligopoly d. oligopoly and monopolistic competition e. perfect competition and monopolistic competition