On average each year, about 7 percent of all firms in the United States are new, and 1 percent go out of business. According to the text, which of the following is not true?
A) Luck may play a role in a firm's performance.
B) A focus on quality may have a role in a firm's performance.
C) Being a first mover is never a reason for failure.
D) Size may be an important factor of success.
E) A firm that globalizes may find that it fails.
C
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The simple circular flow of income shows that the total income in an economy equals
A) all taxes paid by households. B) total expenditures. C) the total amount of money supplied by the government. D) total profits earned by firms.
Which of the following is NOT part of the FOMC directive?
A) It lays out the FOMC's general economic objectives. B) It specifies target ranges for money supply growth. C) It establishes short-term federal funds rate objectives. D) It specifies who the chair of the Fed is.
Refer to the table below. If these are the only four price options for a pound of sugar, what is the value of A?
The above table provides the possible prices for a pound of sugar next year along with the associated probabilities (in percent).
A) 0.45
B) 1.00
C) 0.10
D) 0.25
Based on the figure, the economy is initially in long-run equilibrium at point A. If there is a favorable supply shock that increases potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then there is initially ________ gap and the short-run aggregate supply curve will ________. 
A. a recessionary; eventually shift to SRAS' B. an expansionary; eventually shift to SRAS' C. an expansionary: eventually shift to SRAS" D. a recessionary; eventually shift to SRAS"