Which of the following is NOT a characteristic of long-run equilibrium in monopolistic competition?
A) The firm earns zero economic profit.
B) Price is equal to average total cost.
C) Production occurs at minimum average total cost.
D) Marginal revenue is equal to marginal cost.
E) Price exceeds marginal revenue.
C
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Which of the following would increase net exports in the United States?
A) The United States purchases 500 silver necklaces from Mexico. B) A Mexican citizen purchases 25 shares of stock in Ford Motor Company. C) The U.S. government donates $5 million to Mexico to help victims of drought in Mexico. D) The government of Mexico purchases 500 Ford F-150 pickup trucks from the United States.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. If Country A were to divide its resources equally, it could produce:
A. 30 cars and 6 trucks.
B. 25 cars and 5 trucks.
C. 15 cars and 3 trucks.
D. 10 cars and 4 trucks.
An increase in aggregate supply (shift to the right) will cause the price level to
a. rise and real GDP to rise b. rise and real GDP to fall c. rise and the unemployment rate to fall d. fall and real GDP to rise e. fall and the unemployment rate to rise
Which statement is the most accurate?
A. In the U.S., there is no such thing as non-competing groups. B. The jobs described in Beth Schulman's The Betrayal of Work are in the primary labor market. C. When you work for Wal-Mart as an associate, you are in the primary labor market. D. In Nickel and Dimed, Barbara Ehrenreich described her experiences in the secondary labor market.