A perfectly competitive firm is so small relative to the size of the market that the firm's decision about how much to produce:
a. has a significant effect on market price.
b. has a significant effect on market supply.
c. has no effect on market price.
d. has no effect on the market demand.
c
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A real cost of tariffs and quotas that is difficult to measure is that they
A) encourage rent seeking. B) shift income from consumers to producers. C) limit the quantity of imports. D) reduce wages. E) cause deflation.
When the exchange rate is allowed to shift gradually over time, or within an exchange rate band which may also shift over time, this is considered a(n):
A) fixed exchange rate. B) managed float. C) flexible exchange rate. D) none of the above.
Moving away from the contract curve will
A) harm both parties. B) harm only one of the parties. C) harm at least one of the parties. D) harm neither of the parties.
Which of the following variables is measured only at a particular point in time and not over different time periods?
a. The unemployment rate b. Consumer income c. The federal government's debt d. The federal government's budget deficit e. Total expenditure