In a perfectly competitive market, which of the following determines the market price?
A) market demand and a firm's supply
B) market supply and a firm's demand
C) a firm's demand and its supply
D) market demand and market supply
D
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If we ignore the negative or positive sign, the midpoint method of calculating a percentage change in price between two points on a demand curve results in
A) a smaller percentage change if the price rises than if it falls. B) the same percentage, regardless of whether the price increases or decreases. C) the price elasticity of demand. D) the price elasticity of supply. E) a higher percentage change if the price rises than if it falls.
The natural unemployment rate
A) is a constant figure of about 4 percent. B) fluctuates with the rate of inflation. C) is the unemployment rate that occurs when the economy is at full employment. D) is equal to cyclical unemployment.
When we study choice architecture, we recognize that people make:
A. choices which always maximize their well-being. B. mistakes in seemingly random ways. C. mistakes in common and predictable ways. D. choices that rarely maximize their well-being.
________ is an industry market structure with many firms each able to differentiate their products.
A. Monopolistic competition B. Perfect competition C. A monopoly D. An oligopoly