Under perfect competition, a firm is a price taker because:
A. setting a price higher than the going price results in profits.
B. each firm's product is perceived as different.
C. each firm has a significant market share.
D. setting a price higher than the going price results in zero sales.
Answer: D
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The desirability of an export orientation for development rests on the claim that export industries
a. make better use of domestic resources than do import-substitute industries b. attract foreign investors c. use factors of production that are abundant domestically d. earn more foreign exchange than would be saved by substituting for imports e. all of the above
The most-favored-nation policy implies that the United States will
a. extend concessions made in bilateral trade agreements to all other nations. b. give preference to North American nations in all trade matters. c. work to lower trade barriers with Canada. d. extend tariff and quota concessions only to major trading partners.
A limitation on fiscal policy is time. Which of the following does not impact the timeliness of fiscal policy?
A. It takes time to recognize that the economy is in trouble. B. It will take time to develop a policy strategy and for Congress to pass it. C. All of these impact the timeliness of fiscal policy. D. It will take time for the policy to be implemented and for the many steps in the multiplier process to unfold.
The earnings that a corporation saves for investment in other productive activities are
A. transfers in kind. B. capital gains. C. tax incidence. D. retained earnings.