Which is the most accurate statement?
A. There are generally large economies of scale available to perfect competitors.
B. Perfect competition is an ideal state of affairs, which unfortunately, does not exist in any industry.
C. A perfectly competitive industry often has substantial barriers to entry.
D. Although perfect competitors produce an identical product, they do compete on the basis of price.
B. Perfect competition is an ideal state of affairs, which unfortunately, does not exist in any industry.
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Which of the following workers is most likely to lose his/her job during a recession?
A. Barber B. Farmer C. Baker D. Construction worker
If an economy's actual GDP exceeds its potential GDP, _____
a. wages and prices must fall b. self-correcting forces will shift the SRAS curve to the left c. self-correcting forces will shift the AD curve to the left d. inflation will occur when AD shifts to the left e. unemployment is likely to be unusually high
Wages in American industry are very high because of wage laws
a. True b. False Indicate whether the statement is true or false
Aggregate demand _________. Real GDP growth and the inflation rate _________.
Fill in the blank(s) with the appropriate word(s).