A monopolistically competitive firm that earns an accounting profit in the short run
A) must also earn an economic profit in the short run.
B) does not earn enough to earn an economic profit in the short run.
C) could earn an economic profit, break even, or suffer an economic loss in the short run.
D) could earn an economic profit or break even, but could not suffer an economic loss in the short run.
Answer: C
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Middlemen would serve no productive function if
A) information is scarce and transactions costs are zero. B) information is free and transactions costs are significant. C) information is free and transactions costs are zero. D) people only purchased what they need, rather than what they want.
Which of the following are parts of the business cycles?
A) peak and potential GDP B) real GDP and potential GDP C) recession and expansion D) inflation and recession
What determines the real exchange rate and the nominal exchange rate in the long run?
What will be an ideal response?
Which of the following statements is true about the circular flow?
a) Output is greater than income b) Income is more than expenditure c) Output is less than expenditure d) Output equals income equals expenditure