FBLA Economics Questions with Correct Answers

In terms of number, most firms are corporations. Correct Answer False In competitive market structures, economic profits are always greater than zero in the long run. Correct Answer False Progressive Tax Correct Answer Most air pollution is in lower developed countries which do not have pollution control laws. Correct Answer False Which of the following approaches to pollution control have had the most dramatic results in decreasing pollution? Correct Answer Markets for pollution rights and regulation Which of the following market structures have economic profits competed away by new firms entering the industry in the long run? Correct Answer Monopolistic competition and pure competition Consumers expect a surplus for a product to develop in a market. What is the likely effect on consumers' demand for this product today? Correct Answer Decrease Aggregate Demand Correct Answer ... What is the correct fiscal policy when a recession is caused by a decrease in aggregate demand? Correct Answer Increase government spending and decrease taxes Firms maximize profit when Correct Answer Marginal revenue=marginal cost Price Inelastic Correct Answer The change in price doesnt not cause a substantial change in supply or demand Elasticity of Supply Correct Answer The change in price causes a large change in supply Comparative Advantage Correct Answer When a person has lesser opportunity cost in creating something than someone else Absolute Advantage Correct Answer When a person can create more of something