In a competitive market, the actions of any single buyer or seller will
a. have a negligible impact on the market price.
b. have little effect on market equilibrium quantity but will affect market equilibrium price.
c. affect marginal revenue and average revenue but not price.
d. adversely affect the profitability of more than one firm in the market.
a
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Which of the following will cause an increase in economic growth?
A) a reduction in the unemployment rate B) a reduction in labor force participation C) an increase in human capital D) a reduction in the stock of physical capital
The long-run aggregate supply curve assumes that
A) the unemployment rate is more than 9 percent. B) there is no government purchasing of goods and services. C) only laborers are fully employed. D) all factors of production are fully employed.
Changes in real planned investment spending have
A) an inverse relationship to changes in the interest rate. B) no identifiable relationship to changes in the interest rate. C) a direct relationship to changes in the level of household savings. D) a direct relationship to changes in interest rates.
A successful market economy requires
A) an equitable distribution of income and limits on immigration. B) generous unemployment benefits and paid medical leave for everyone in the labor force. C) a government-controlled banking system and government price controls. D) well-defined property rights and an independent court system to adjudicate disputes based on the law.