Which of the Following Is True

question 184

Multiple Choice

Which of the following is true?

• A) Price takers will not be able to earn economic profits in the long run, but competitive price searchers will be able to do so.
• B) Competitive price searchers will not be able to earn economic profits in the long run, but price takers will be able to do so.
• C) Neither competitive price searchers nor price takers will be able to earn economic profits in the long run.
• D) Both competitive price takers and price searchers will be able to earn economic profits in the long run.

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Definitions:

National Debt

The total amount of money that a country's government has borrowed and not yet repaid.

Fiscal Policy

Government policy related to taxation and spending to influence the economy.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, visible in GDP, real income, employment, industrial production, and wholesale-retail sales.

Budget Deficit

The situation in which a government's expenditures exceed its revenues, leading to borrowing or currency issuance.