A competitive market is characterized by
a. the absence of entry barriers
b. many buyers with a single seller
c. imperfect information
d. a differentiated product
a. the absence of entry barriers
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If the cross elasticity of demand is negative, that means the goods
A) have elastic demands. B) have inelastic demands. C) are complements. D) are substitutes. E) are inferior.
Over the last several decades, per capita world food production has
a. risen rapidly b. been stable c. risen at first, but then fallen d. risen slowly e. fallen continuously
When a country establishes trade restrictions, domestic producers of goods that compete with imported goods
a. always lose in the short run b. always gain in the long run c. may lose in the long run if protection stifles innovation and leaves the industry vulnerable d. may gain in the short run because wages will fall in that industry e. usually lobby against such restrictions
If price is lowered by law from the market equilibrium value of $5 to a lower value of $4:
A. producer surplus will decrease and there will be some total surplus lost. B. consumer surplus will decrease and there will be some total surplus lost. C. there will be lost surplus, as both producer surplus and consumer surplus decrease. D. both producer surplus and consumer surplus will increase.