Consumers don't care which supplier they buy from in a perfectly competitive market because:
A) the outputs of the firms in a perfectly competitive market are all the same.
B) the consumers have no choice regarding who they buy from.
C) price is always low enough that the choice of supplier doesn't matter.
D) all of the above.
A
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Which of the following is true of economic expansions?
A) Economic expansions are defined as the period between recessions. B) Consumption increases but investment falls during periods of economic expansion. C) Output grows during periods of economic expansion, but the unemployment rate is also high. D) Governments can correctly predict the length of periods of economic expansion.
If the marginal propensity to save is 0.3, the size of the multiplier is:
A. 0.7. B. 3.3. C. 1.3. D. 2.3.
When one person knows more than another, it creates a situation:
A. called information asymmetry. B. called information dominance. C. in which the transaction will not occur. D. in which the transaction is always regretted.
If the U.S. were to revert to a gold standard, trade deficits would:
A. result in higher domestic interest rates. B. quickly disappear. C. result in high inflation. D. result in gold reserves in the U.S. increasing.