The invisible hand's ability to coordinate the decisions of the firms and households in the economy can be hindered by
a. government actions that distort prices.
b. increased competition in markets.
c. enforcement of property rights.
d. too much attention paid to efficiency.
a
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In 2005 real personal saving has decreased to ________ of personal disposable income
A) 3.5 B) 4.8 C) 11.2 D) 1.4
In the long run, a profit-maximizing monopolistically competitive firm sets it price:
A. above marginal cost. B. below marginal cost. C. equal to marginal revenue. D. equal to marginal cost.
Figure 11.2Figure 11.2 shows demand and costs for a monopolistically competitive firm. In the long run we expect:
A. the firm to produce more output at a higher price. B. the firm to charge a price which is equal to its average cost of production. C. the firm to experience a decrease in the average cost of production. D. the firm to earn a greater profit.
How do you account for the widespread use of tariffs and import quotas internationally but the virtual absence of such trade barriers among the 50 states?
What will be an ideal response?