Clothing retailers have faced greater competition in recent years as more firms have entered the clothing market. Some of the competition has come from foreign competitors, but much of it is domestic competition
As a result there is much competition in markets for many types of clothing and A) individual buyers and sellers cannot affect the market price because it is determined by the market forces of demand and supply.
B) there are no other implications.
C) firms have a great degree of flexibility in pricing their products because these products can be sold at a high profit level.
D) there are relatively few buyers and sellers in the market, and one individual firm can determine the market price.
A
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A decrease in households' disposable income ________ saving supply, and the supply of loanable funds curve ________
A) increases; shifts rightward B) decreases; shifts leftward C) increases; shifts leftward D) does not change; does not shift E) decreases; shifts rightward
The incidence of a tax refers to
a. who receives the benefits from the revenue generated by the tax b. the changes in the marginal tax rate as income increases c. whether the tax is regressive, proportional, or progressive d. who bears the burden of the tax e. whether the tax is based on the ability-to-pay principle
The term autarky refers to
a. equilibrium after trade begins between two countries b. the gains received from trade c. self-sufficiency d. political isolationism e. the recognition that mutually beneficial trade is not possible between two countries
Which of the following statements is correct?
A. When borrowers repay bank loans, the money supply is increased B. When borrowers take out bank loans, the money supply is decreased C. A single bank can legally lend an amount equal to its total reserves D. A bank can only grant loans to customers if it has excess reserves