In a perfectly competitive market,
a. no firm can earn an economic profit
b. it is possible for each firm to earn an economic profit in the short run
c. firms determine the market price and consumers determine the market quantity
d. consumers determine the market price, and firms decide how much to produce at that price
e. the market demand curve is a horizontal line at the market price
B
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Suppose that the U.S. government acquires more foreign currency. How does this change affect the balance of payments accounts?
A) The capital and financial account is negative. B) The capital and financial account is positive. C) The official settlements account balance is negative. D) The official settlements account balance is positive. E) The balance of payments account sum to a positive number equal to the value of the additional foreign currency the government has obtained.
Suppose Jones sells a good for $100 at a yard sale. If the producer surplus from the sale is $75, Jones's cost of the good must have been:
a. $100 b. $175. c. $25 d. equal to the deadweight loss.