If a firm in a competitive industry is making zero economic profit but still producing, it must be the case that:

A consumption-based theory of the determination of the real interest rate is based on the assumption that: a. a rise in the real interest rate will increase current consumption

b. the real interest rate must adjust to make people willing to experience changing consumption levels over time. c. the real interest rate is determined by the supply and demand for investment and is therefore unaffected by consumption decisions. d. the real interest rate must be positive.

Economists can illustrate an uneven distribution of income by sketching a Lorenz curve that lies above the diagonal

a. True b. False Indicate whether the statement is true or false