If a firm in a monopolistically competitive market has a demand curve shifting to the right, it is likely that:
A. the selling price is less than the average total cost of the firm.
B. positive economic profits are being earned.
C. firms are entering the market.
D. All of these statements are true.
Answer: A
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Under the monetary growth rule proposed by the monetarists, the money supply would grow each year at a constant rate equal to the long-run rate of growth of
A) employment. B) inflation. C) interest rates. D) real GDP.
Which of the following statements is false?
A) Japan is less dependent on foreign trade than is the United States. B) Imports and exports account for over one-half of the GDP of the Netherlands. C) China is the leading exporting country, accounting for 12.1 percent of total world exports. D) Because the cost of labor used on farms is so high, the United States exports very little of its wheat, rice, and corn crops.