If a perfectly competitive firm faces a market price of $3 per unit, and it decides to produce 30,000 units, the market price will likely:
A. increase.
B. decrease.
C. stay the same.
D. increase initially and then decrease.
C. stay the same.
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Alex is a non-union employee in a factory. If the union negotiates certain benefits for the employees, Alex enjoys all the benefits although he does not pay the union fee. His behavior is an example of ________
A) rent-seeking B) free-riding C) profit maximizing D) rivalry
When a variable is determined by a factor inside of the function or model being evaluated, it is said to be
A) endogenous. B) exogenous. C) unexplained. D) statistically insignificant.
One of the assumptions underlying the production possibilities curve for any given economy is that:
a. the state of technology changes. b. there is an unlimited supply of resources. c. there is full employment of resources when the economy is on the curve. d. goods can be produced outside the curve.
Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to the ________ economists, under rational expectations an expected decrease in taxes would not change AD or AS.
A. Keynesian B. the new classical C. monetarist D. none of the above