A perfectly competitive industry consists of firms that produce ________ products.
A. unique
B. slightly differentiated
C. identical
D. significantly differentiated
Answer: C
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The elasticity of demand for a product is likely to be greater
A) the smaller the number of substitute products available. B) the smaller the proportion of one's income spent on the product. C) the larger the number of substitute products available. D) if the product is an imported good rather than a domestically produced good.
If the federal government runs a budget deficit, and the budget deficit as a percent of GDP is equal to the growth rate of real output, the
a. national debt will decrease as a share of GDP. b. national debt will remain a constant share of GDP. c. national debt will increase as a share of GDP. d. size of the national debt (in dollar value) will decline.
Which of the following is not a reason to restrict trade?
A. Concerns about dumping. B. Concern about high prices for consumers. C. Protection of infant industries. D. Preservation of national security.
If buyers believe that the percentage of high-quality goods on the market is greater than the actual percentage of high-quality goods on the market:
A. buyers will be willing to pay a price that is higher than the price they would pay with perfect information. B. the most that buyers will be willing to pay is less than the price they would pay with perfect information. C. sellers of low-quality goods will be driven from the market. D. the market will be in a short-run equilibrium.