Consider a perfectly competitive industry in a long-run equilibrium. If a single firm in that industry discovers a significant cost-saving production technology, then:
A. the firm will earn an economic profit in the long run.
B. the rest of the industry will quickly adopt the new technology.
C. all firms in the market will earn an economic profit in the short run.
D. all the firms in the market will earn an economic profit in the long run.
Answer: B
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The balance of payments equals
A) the sum of the current account and the financial account. B) the current account minus net unilateral transfers. C) net investment income from abroad. D) the net increase in a country's official reserve assets.
To “cure” their balance of payments deficits without altering exchange rates, Southeast Asian countries in 1997 were forced to create
A. more inflation. B. recessions. C. faster economic growth. D. money at an accelerated rate.