Barriers to entry reduce the likelihood that price-setter firms will see their positive economic profits competed away over time

The term "satisficing" indicates an optimal choice

a. True b. False Indicate whether the statement is true or false

Which of the following helps explain why the aggregate demand curve slopes downward?

a. If the price level increases, the purchasing power of the fixed quantity of money decreases, causing people to buy less. b. If the price level increases, the purchasing power of the fixed quantity of money increases, causing people to buy more. c. If domestic prices increase, we substitute domestic goods for imported goods. d. If domestic prices decrease, we substitute imported goods for domestic goods.