In which market structure model may firms earn economic profits in the long run?

Select one:

a. Perfect competition

b. Monopoly

c. Monopolistic competition

d. All of the above.

e. None of the above.

A bowed-out PPC implies that producing more and more of one good will bring about

Select one:

a. increasingly larger declines in the production of the other good.

b. increasingly smaller declines in the production of the other good.

c. a proportionate decrease in the production of the other good.

d. economic growth.

e. technological improvement.

Structural unemployment is the result of

Select one:

a. business cycle fluctuations.

b. recurring changes in the hiring needs of certain industries.

c. short-term movement of workers between jobs.

d. job search for first-time job seekers.

e. technological change or permanent changes in industry demand.

According to the text, a negative economic profit

Select one:

a. means the resources would have a higher value in another use.

b. means capital would be better used elsewhere.

c. means labor would be better used elsewhere.

d. means land would be better used elsewhere.

e. means the firm will go out of business.

Marginal utility is

Select one:

a. equal to the price of the good.

b. the usefulness of the last or next unit of a good consumed.

c. the utility associated with the consumption of a market basket of goods and services.

d. the change in total utility associated with consuming an additional good that was not consumed before.

e. the change in total utility associated with consuming an additional unit of a good.

When the supply of bonds rises,

Select one:

a. bond prices fall, causing the current interest rate to rise.

b. bond prices fall, causing the current interest rate to decline.

c. bond prices rise, causing the current interest rate to rise.

d. bond prices rise, causing the current interest rate to decline.

e. both bond prices and annual interest payments fall, causing the current interest rate to remain unchanged.

Cash reserves over and above required reserves are called

Select one:

a. safety reserves.

b. total reserves.

c. deposit insurance.

d. excess reserves.

e. the reserve requirement.

Which of the following statements conforms to utility theory?

Select one:

a. Marginal utility equals total utility along a positively sloped demand curve.

b. Diminishing marginal utility explains why a supply curve is upward sloping.

c. Diminishing marginal utility means that price must be lowered to induce suppliers to produce more of a product.

d. Total utility is a negatively sloped curve.