In a perfectly competitive market, the first firm to adopt a new cost-saving technological advance will
a. buy more resources
b. suffer an economic loss
c. earn an economic profit until other competitors adopt the technology
d. export to foreign markets
e. supply low income neighborhoods
C
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Economic studies have generally found that professional sports players have salaries that
a. greatly exceed their marginal contribution to a team's revenue stream. b. are approximately equal to their marginal revenue products. c. are about one-half of what they contribute to a team's profitability. d. are less than one-tenth of their marginal revenue products.
Currently, China and India are growing much faster than the United States and Western Europe. This high rate of growth will eventually and naturally slow down in the future because:
a. China and India will exhaust their natural resources. b. Actually, there is no economic reason for China and India's growth rates to fall in the future. c. Current account surpluses will eventually cause capital flight from these nations which will lower the value of their currency and reduce their growth rates. d. Consumption will increase and crowd out investment spending. e. Diminishing returns will eventually set in.