Perfectly competitive industries are characterized by a homogeneous product.
Answer the following statement true (T) or false (F)
True
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Based on the table above which shows Chip's costs, if rice sells for $600 a ton, Chip
A) makes an economic profit and should stay open in the short run. B) makes an economic profit, but should shut down in the short run. C) incurs an economic loss, but should stay open in the short run. D) incurs an economic loss and should shut down in the short run.
New classical economists like Robert Lucas argue that the Great Depression was primarily caused by
a. lots of mistaken expectations about the future. b. significant falls in investment. c. significant falls in the money supply. d. significant increases in taxes. e. all of the above.
Government spending has no effect on resource allocation since the government simply engineers a transfer of private goods and services from one group in the economy to some other group
Indicate whether the statement is true or false
The fiscal shock in Germany due to reunification caused the Bundesbank to pursue a monetary policy that:
A) was appropriate for Britain, since it had experienced a similar shock. B) was appropriate for all the other ERM nations but not Britain. C) was appropriate only for Germany, since neither Britain nor other ERM nations experienced a similar shock. D) had poor timing, since the monetary action should have come before the reunification.