Monopolistically competitive firms
a. are guaranteed to earn short-run economic profit
b. may earn short-run economic profits, although long-run economic profit is typically zero
c. may earn economic profit both in the short run and in the long run
d. earn zero economic profit both in the short run and in the long run
e. can only earn an economic profit in the inelastic portion of their demand curves
B
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An important foundation of the new growth theory is that
A) we will get more technological advances when the rewards for producing them are greater. B) the growth rate of the capital stock is more important than the growth rate of new knowledge in generating economic growth. C) we will get more technological advances the more the government is involved. D) improvements in labor productivity are poor measures of technological growth.
If the yen to dollar exchange rate moves from 105 to 115 yen per dollar, then the dollar has ________ and the yen has ________
A) appreciated; appreciated B) appreciated; depreciated C) depreciated; depreciated D) depreciated; appreciated