In a perfectly competitive market, positive economic profits act to
A) attract new entrants into the industry.
B) drive potential competitors away from the industry.
C) prevent reinvestment on the part of firms within the industry.
D) signal resource owners elsewhere not to invest their capital in this industry.
Answer: A
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If aggregate demand shifts right and the President and Congress want to use fiscal policy to reverse the change in output, they could
a. increase government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will raise output above its long-run level. b. increase government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will reduce output to below its long-run level. c. decrease government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will raise output above its long-run level. d. decrease government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will reduce output to below its long-run level.
All of the following are part of the "state health insurance marketplaces" provision of the Patient Protection and Affordable Care Act (ACA) except
A) each state is required to establish an Affordable Insurance Exchange. B) small businesses with fewer than 50 employees are exempt from being required to participate in the program. C) low-income individuals are eligible for tax credits to offset the costs of buying health insurance. D) the marketplaces offer health insurance policies that meet certain specified requirements.