If the firms in a competitive price-searcher market are earning zero economic profit, this indicates that the
a. market is not in long-run equilibrium.
b. firms are earning the normal rate of return.
c. firms are performing worse than the firms in other markets.
d. firms are performing better than firms in other markets.
B
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If the price of tangerines increases, the price of oranges also rises because
A) buyers' incomes must have decreased, and oranges are an inferior good. B) if the supply of tangerines decreased, then the supply of oranges also must decrease. C) buyers must have expected a higher price for oranges and thus increased their demand for oranges. D) consumers consider the two goods complements, and so sellers decreased the supply of oranges. E) consumers consider the two goods substitutes, and demand for oranges increases.
Adam Smith argued that each person in a competitive market is led to promote the
A) efficient use of society's resources, because each person's intention is to make society better off. B) efficient use of society's resources, even though it is no person's intention to make society better off. C) inefficient use of society's resources, even though each person's intention is to make society better off. D) inefficient use of society's resources, because it is no person's intention to make society better off.