In a purely competitive industry, each firm:
A. produces a differentiated product.
B. can easily enter or exit the industry.
C. engages in forms of nonprice competition.
D. is a price maker.
Answer: B
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The United States produces more services than goods
Indicate whether the statement is true or false
The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had which of the following consistent results?
A) a decline in real wages due to an upward shift of the production function B) an increase in the rental price of capital along with a healthy stock market response C) a decline in real wages due to a downward shift of the MPL curve D) an increase in the rental price of capital due to an upward shift of the production function E) none of the above
Firms make a profit when they equate marginal revenue with marginal cost
Indicate whether the statement is true or false
If the ____ is/are fixed, a change in nominal income is equivalent to a change in real income
a. price level b. interest rates c. tastes and preferences d. future expectations