Most macroeconomists agree that the fundamental issues facing an economy are
a. unemployment and inflation, and what should be done about them
b. the economy's long-run equilibrium position and how to get there
c. the quantity of money and its velocity
d. the long-run Phillips curve and the Laffer curve and whether they generate conflicting outcomes
e. government deficits and high taxes
A
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Suppose the price of wine in Berylia is higher than the world price of wine. If the market for wine is opened to international trade, how will the total surplus in the market get affected?
The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive.
If mushrooms sell for $40 per bushel, and Moe chooses the profit-maximizing quantity, he will:
A. earn positive profit. B. earn negative profit (a loss). C. earn zero profit. D. shut down.