In a price-taker market, profits are
a. the result of consumers being charged arbitrarily high prices.
b. a reward for creating value.
c. the result of barriers to entry into the market.
d. a signal that fewer resources are needed in a market.
B
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What role does money play in the circular flow model?
What will happen if an economy transforms from being extractive to being inclusive?
A) The return-to-entrepreneurship schedule will shift leftward and the opportunity cost to entrepreneurship will increase. B) The return-to-entrepreneurship schedule will shift leftward and the opportunity cost to entrepreneurship will decrease. C) The return-to-entrepreneurship schedule will shift rightward and the opportunity cost to entrepreneurship will increase. D) The return-to-entrepreneurship schedule will shift rightward and the opportunity cost to entrepreneurship will decrease.
Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. Which of the following statements is TRUE at all levels of production?
A) MC = AVC B) MC = AC C) MC > AFC D) All of the above.
A decrease in aggregate demand in the short run will reduce:
A. Both real output and the price level B. The price level and increase the real domestic output C. The real domestic output and have no effect on the price level D. The price level and have no effect on real domestic output