Characteristics of a perfectly competitive market include:
A. the presence of transaction costs.
B. differentiated products.
C. many sellers, each with a small market share.
D. All of these are characteristics of a perfectly competitive market.
C. many sellers, each with a small market share.
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Economic surplus is another term for which of the following?
a. efficiency b. consumer surplus c. social surplus d. deadweight loss
Of the following items, which is least likely to be discussed by a teacher of macroeconomics?
a. the national employment b. the business cycles c. our unemployment policy d. national income accounting e. a firm's profit
The SRAS curve is upward sloping, there is a liquidity trap, and investment spending is sensitive to changes in the interest rate. According to the monetarist transmission mechanism, if the money supply increases the AD curve __________ and the price level __________
A) does not change; does not change B) shifts to the left; falls C) shifts to the right; rises D) does not change; rises E) none of the above
Refer to the information provided in Figure 3.11 below to answer the following question(s).
Figure 3.11Refer to Figure 3.11. A movement from Point C to Point B on supply curve S2 would be caused by a(n)
A. decrease in the price of mushrooms. B. decrease in the price of hamburgers, assuming hamburgers are a substitute for pizza. C. increase in the demand for gardenburgers. D. decrease in the price of gardenburgers.