Market power is defined as:
(a) The ability of a perfectly competitive firm to charge any price it wants.
(b) The strength of the equilibrium in the market.
(c) The ability of a seller to affect the market price of a good or service.
(d) All of the above.
Answer: (c) The ability of a seller to affect the market price of a good or service.
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A mixed economic system is best described as an economy with a mix of
A) state and federal governments. B) domestic and foreign buyers. C) free markets and government control. D) for-profit organizations and not-for-profit organizations.
All of the following are major sources for financing public education EXCEPT
A) income taxes. B) sales taxes. C) property taxes. D) government fees.
If the long-run market supply curve is perfectly elastic, an increase in demand will cause the final equilibrium to be at:
A. the original price but with a higher output. B. a higher price with a higher output. C. a higher price but with the same output. D. the original price but at a smaller output.
Harry and his wife are looking for a new house. However, they cannot decide where to buy the house. Harry wants to live in Santa Cruz, while his wife wants to live in Ontario
If Harry values living in Santa Cruz at $10,000 and his wife values living in Ontario at $15,000, in which place are they likely to buy a house?