In long-run monopolistically competitive equilibrium, there can be
A. economic profits, but not losses.
B. economic profits or losses.
C. neither economic profits nor losses.
D. no economic profits, but losses.
Answer: C
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Of the three primary tax sources of revenue for the U.S. federal government, which of the following has displayed no long-term trend as a percentage of GDP since 1962?
A) corporate income taxes B) social insurance taxes C) sales and excise taxes D) individual income taxes
Under a system of flexible exchange rates, which of the following would be most likely to cause a nation's currency to appreciate on the foreign exchange market?
a. stable domestic prices while the nation's trading partners are experiencing inflation b. a decrease in domestic interest rates c. an increase in foreign interest rates d. a domestic inflation rate of 10 percent while the nation's trading partners are experiencing stable prices