In the long run, perfectly competitive firms make zero economic profit. This result is due mainly to the point that a perfectly competitive market has
A) few buyers and sellers.
B) no barriers to entry and exit.
C) price taking by the firms.
D) firms with perfectly elastic market demand.
B
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Alt-A mortgages are
A) mortgages which are bundled together by financial institutions and sold to investors. B) mortgages issued to borrowers who fail to document that their incomes are high enough to afford their mortgages. C) mortgages issued to borrowers with flawed credit histories. D) government-backed mortgages issued by Fannie Mae and Freddie Mac.
If a nation has a current account surplus and it does not have to make any inpayments or outpayments of official reserves, it must have a:
A. surplus in its capital and financial account. B. balance of payments deficit. C. balance of payments surplus. D. deficit in its capital and financial account.