Compare and contrast the effect of perfect competition to the effect of perfect price discrimination on:
a. efficiency.
b. consumer surplus.
c. economic profit in the long run.
a. Both perfect competition and perfect price discrimination create efficiency.
b. Consumers receive consumer surplus with perfect competition. However, there is no consumer surplus with perfect price discrimination.
c. Perfectly competitive firms cannot earn an economic profit in the long run. A perfectly price discriminating monopoly earns the maximum amount of economic profit.
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If you have a comparative advantage in a particular task, then:
A. you are better at it than other people. B. you give up less to accomplish that task than do others. C. you give up more to accomplish that task than do others. D. you have specialized in that task, while others have not.
Opportunity cost is the difference between the nominal and real cost of some action
Indicate whether the statement is true or false
The natural rate of interest is the rate
A) which equates saving and investment under any employment condition. B) which equates saving and investment with acceptable, but low, unemployment. C) which equates saving and investment at an unemployment rate of 5 percent or less. D) which equates saving and investment at full employment.
What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.)The U.S. Federal Reserve intervenes to puchase U.S. dollars in the foreign exchange market
a. Debit the U.S. financial account; credit the U.S. financialaccount. b. Credit the U.S. financial account; debit the U.S. financialrccount. c. Debit the U.S. financial account; credit the U.S. current account. d. Credit the U.S. financial account; debit the U.S. current account.