Sellers in competitive price-searcher markets
a. face competition both from existing firms and potential new entrants.
b. face competition from existing firms but not from potential new entrants.
c. face competition only from potential new entrants and only in the long run.
d. can compete only by product quality since product prices are set by market forces.
A
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In New York City, Mayor Michael Bloomberg has recently recommend that the city, with the help of private donors, make cash payments to poor and underprivileged parents who can certify that their children are attending school on a regular basis
The payments would start after third grade and go through high school, rising each year as dropout rates get higher and a child's forgone earning potential is higher. What economic concept does this policy represent? A) public goods B) technological progress C) externalities D) the "invisible hand" E) incentives
The HPAE have been more open to imports than most developing countries
Indicate whether the statement is true or false
The idea that it takes 90 percent of your time to clean up the last 10 percent of your house illustrates that
A) the marginal cost of cleaning up slopes downward. B) the marginal cost of cleaning up slopes upward. C) the marginal benefit of cleaning up is constant. D) the marginal benefit of cleaning up slopes upward.
Which is NOT an example of signaling high quality in a social setting
a. wearing a business suit on a job interview b. scrimping on the tip for the waiter after a dinner date c. offering an expensive engagement ring to your bride d. Visiting the beauty salon before a big date