In the long run in monopolistic competition, firms earn zero economic profit
a. True
b. False
A
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Suppose the nominal wages of workers in an economy increase by 7 percent while the price level rises by 5 percent. The real wages:
a. would increase by about 2 percent. b. would decrease by about 5 percent. c. would increase by about 50 percent. d. would increase by about 10 percent. e. would decrease by about 25 percent.
When there are diseconomies of scale in production: a. long-run average total cost declines as output expands. b. long-run average total cost increases as output expands. c. marginal cost decreases as output expands
d. none of the above
Unemployment insurance is:
A. money that is paid by the government to people who are unemployed. B. offered by the government as a way to affect the level of seasonal unemployment. C. offered by companies as a way to affect the level of frictional unemployment. D. All of these are true.
Protectionism is the view that free trade is ________ and should be ________.
A. helpful; encouraged B. harmful; restricted C. inevitable; allowed D. illegal; forbidden