Why is the perfect competition model unrealistic?
A. The model assumes that market structures are dynamic.
B. Monopoly is more prevalent in the economy than is perfect competition.
C. Homogeneous products are numerous in the economy.
D. Self-seeking individuals actively seek out ways to limit competition to increase personal gains.
Answer: D
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If freezing weather in Florida destroys a large portion of the current orange crop,
A) prices of Florida oranges will rise and quantity demanded will fall. B) the supply of and the demand for Florida oranges will both fall. C) the demand for Florida oranges will fall and prices will rise. D) the supply of Florida oranges will decline but not the quantity demanded.
Inefficiency exists in an economy when a good is
a. not being consumed by buyers who value it most highly. b. not distributed fairly among buyers. c. not produced because buyers do not value it very highly. d. being produced with less than all available resources.
From 2001 to 2005 there was a dramatic rise in the price of houses. If this rise made people feel wealthier, then it would have shifted
a. aggregate demand right. b. aggregate demand left. c. aggregate supply right. d. aggregate supply left.
Refer to Table 21.5:Table 21.5QTFCTVCTCAVCMC0 15--1 23 2 43 15 Total fixed costs in Table 21.5 are equal to
A. $60. B. $15. C. $0 because the problem involves the long run. D. $30.