Which of the following statements about perfectly competitive markets is not correct?
a. In the short run, firms can earn economic profits or suffer economic losses.
b. The market demand curve is downward sloping.
c. The demand curve facing an individual firm is perfectly elastic.
d. In the long run, firms can earn economic profits or suffer economic losses.
e. In the long run, firms can enter or exit the market.
D
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Which of the following is an example of an activity that generates positive externalities
a. driving a car b. producing clothing c. washing your car d. education e. building a bridge
Which of the following is an equilibrium condition of the short-run macro model?
a. Taxes equal transfers. b. Imports equal exports. c. Aggregate expenditure equals output. d. Consumption spending equals autonomous consumption spending. e. Consumption spending equals investment spending plus government spending.