Suppose that newspaper companies are now required to use recycled paper, which is more expensive than new paper. Which of the following is most likely to result if the newspaper industry is highly competitive?
A) The firms' costs rise, resulting in positive economic profit in the short run and, hence, the industry supply curve shifts rightward in the long run.
B) The firms' costs rise, resulting in economic losses in the short run and, hence, the industry supply curve shifts rightward in the long run.
C) The firms' costs rise, resulting in economic losses in the short run and, hence, the industry supply curve shifts leftward in the long run.
D) The industry supply curve shifts leftward in the short run, causing permanent long-run economic losses.
C
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If you default on your auto loan, your car will be repossessed because it has been pledged as ________ for the loan
A) interest B) collateral C) dividend D) commodity
One of the reasons that Real Gross Domestic Product is not synonymous with social welfare is
A. domestic production (cooking, laundry and such) are not counted. B. things produced by people under 18 are not counted. C. quality has remained steady. D. people substitute between goods.