The price charged by a perfectly competitive firm is
A) the same as the market price.
B) different than the price charged by competing firms.
C) lower the more the firm produces.
D) higher the more the firm produces.
E) indeterminate.
A
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A horizontal line has a slope of
A. one. B. zero. C. infinity. D. undefined.
As real disposable income increases, we expect the average propensity to consume (APC)
A) to always be below MPC. B) to increase. C) to remain unchanged. D) to decrease.
If nominal GDP in 2001 is $9 trillion, and 2001 real GDP in 1996 prices is $6 trillion, the GDP deflator price index is
A) 7. B) 100. C) 150. D) 200.
The government has just passed a law requiring that all residents earn the same annual income regardless of work effort. This law is likely to
a. increase efficiency and increase equality. b. increase efficiency but decrease equality. c. decrease efficiency but increase equality. d. decrease efficiency and decrease equality.