When perfect competition prevails, which characteristic of firms is likely to be observed?
What will be an ideal response?
They are all price-takers.
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Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product to answer the next question.
Sd + Q is the product supply curve after an import quota is imposed. A quota of y?w will result in quota rent equal to areas
A. F + J. B. E + F + G + H + J. C. F + G + H + J. D. G + H.
A widget costs $50 in the US and CAD$53 in Canada. The current exchange rate is 1USD=1.09CAD. At this rate,
a. The good costs more in the US b. The good costs more in Canada c. The good costs the same across the two countries d. None of the above
The employer who has the most unionized workers is the:
A. government. B. auto industry. C. airline industry. D. trucking industry.
Based on the table showing a summary of fiscal tools, if the government increases its purchases, it is most likely trying to ______.
a. fight inflation
b. enact contractionary policy
c. decrease aggregate demand
d. fight unemployment