Firms in perfect competition are often described as price
A. takers.
B. makers.
C. setters.
D. leaders.
Answer: A
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The value of goods produced in a previous year but sold in the current year is added to the GDP for the current year
Indicate whether the statement is true or false
The local government is holding an auction for a contract to build a new multi-deck parking lot downtown. If the government has a policy to release its own cost estimates of the work to the auction participants, the participants will have ________ confidence in their own cost estimates and will submit ________ bids.
A) less; lower B) more; lower C) less; more D) more; higher
The "crowding-out" debate refers to the disagreement between Keynesians and conservative economists about whether
A. spending for national defense causes reductions in the spending for social welfare. B. government contracts with suppliers of military weapons results in unfair competition with non-defense related industries. C. increased government borrowing has an adverse effect on private investment spending. D. restrictive monetary policy makes expansionary fiscal policy ineffective.
When the First Fundamental Theorem of Welfare Economics doesn't hold, there is a market failure.
A. True B. False C. Uncertain