In long-run competitive equilibrium, a firm that owns factors of production will have an
A) economic profit = $0 and accounting profit > $0.
B) economic profit > $0 and accounting profit = $0.
C) economic and accounting profit = $0.
D) economic and accounting profit > $0.
E) economic and accounting profit can take any value.
Ans: A) economic profit = $0 and accounting profit > $0.
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If the supply curve and the demand curve both shift to the left, then the new equilibrium:
A. price will be lower, but the direction of the change in quantity is uncertain. B. quantity will be higher, but the direction of the price change is uncertain. C. price will be higher, but the direction of the change in quantity is uncertain. D. quantity will be lower, but the direction of the price change is uncertain.
Which of the following statements or questions exemplify positive economics? (check all that apply)
a. The unemployment rate in Mexico is higher than in the United States. b. Should the unemployment rate in the United States be lower than in Mexico? c. When the government increases the minimum wage the unemployment rate will rise. d. The government ought to increase the minimum wage so that incomes rise. e. As the flight ticket prices fall, airlines experience a sharp increase in revenue.