Imperfect competition
A. means there is no competition in the market.
B. should always be regulated by the government
C. is a major cause of externalities in the market.
D. results in less efficient market outcomes.
Answer: D
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In a market economy, the use of resources is determined primarily by
a. needs of people. b. consumer demand. c. decisions of management. d. government regulation.
Which of the following might cause the demand for ice cream, a normal good, to increase?
a. an increase in the price of ice cream b. an increase in the price of sherbet c. cooler weather d. a decrease in the number of consumers e. a decrease in consumer income
Higher milk prices reduce the demand for milk
a. True b. False Indicate whether the statement is true or false
Supply-side economics stress that: a. aggregate demand is the major determinant of real output and aggregate employment
b. tax rates are not a major determinant of real output and aggregate employment. c. an increase in government expenditures financed by higher tax rates will cause RGDP to rise. d. marginal tax rate changes can exert a significant impact on RGDP, even in the long run.