Which of the following is NOT a characteristic of a perfectly competitive market?
A. Each firm in the market sells a somewhat different variant of the good.
B. There are many sellers, each of which sells only a small fraction of the total quantity exchanged.
C. Sellers can easily buy and sell the productive resources needed to enter the market.
D. Buyers and sellers are well-informed.
Answer: A
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If scientific research produces a technological breakthrough in the production of computer memory, then
a. business costs will increase, profits will fall, and production will decrease. b. business costs will fall, but profits will also fall, and production will decrease. c. business costs will fall, profits will improve, and production will increase. d. profits will increase, allowing businesses to cut back production.
In the large country case, when a tariff is imposed, the country:
a. sees a terms-of-trade gain. b. is able to reduce world price of the imported good. c. is going to experience an increase in consumer surplus. d. sees a terms-of-trade gain and is able to reduce world price of the imported good.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
According to the textbook application, the EPA reported in 1993 that
a. secondhand smoke was a carcinogen b. secondhand smoke was prohibited from public places c. secondhand smoke did not pose a human health risk d. none of the above