Suppose a sushi restaurant is making significant economic profit in the short run. In the long run
A) more people will open sushi restaurants, reducing the economic profit for each restaurant.
B) high barriers to entry keep people from opening sushi restaurants.
C) the government will require the sushi restaurant to sell part of its interests in the city.
D) more people will open steak restaurants, increasing the economic profit for the sushi restaurant.
A
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In the Keynesian model,
a. the autonomous expenditure multiplier is lower than the tax multiplier. b. the autonomous tax multiplier is positive and large. c. the autonomous tax multiplier is larger (in absolute value) than the tax multiplier. d. the tax multiplier is equal to 1. e. none of the above.
According to the Fisher effect, if a lender and a borrower would agree on an interest rate of 8 percent when no inflation is expected, they should set a rate of _______ when an inflation rate of 3 percent is expected
a. 2 percent b. 5 percent c. 8 percent d. 11 percent
Money is defined as
a. the currency of a nation. b. anything that is commonly accepted in exchange for other goods and services. c. currency that has been designated as legal tender. d. notes issued by the U.S. Treasury and backed by gold.
The market supply curve indicates the total quantity all producers in a competitive market would produce at each price,
A. allowing all supply shifters to vary. B. holding all supply shifters fixed. C. holding only input price fixed. D. allowing input price to vary.