Households are buyers in factor markets and sellers in goods markets
Indicate whether the statement is true or false
FALSE
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Large differences in inflation rates among countries are almost always the result of large differences in
A) productivity. B) real income growth. C) the growth rates of real money demand. D) the growth rates of nominal money supplies.
The supply curve for a perfectly competitive industry is obtained by
a. making an empirical study of historical data. b. vertically summing the supply curves of firms in the industry. c. horizontally summing the average cost curves of firms in the industry. d. horizontally summing the supply curves of firms in the industry.
Suppose the utility function for a firm manager is U = ? + bQ, where Q is output, ? is profit, and b is a negative constant. How would the firm's output compare with what it would be if the manager's objective was to maximize profit?
A. It would be the same as the profit-maximizing output. B. It would be less than the profit-maximizing output. C. It would be greater than the profit-maximizing output. D. None of the statements is correct.
When economists describe "a market," they mean:
A. A place where stocks and bonds are traded B. A communication network that allow individuals to keep in touch with each other C. A hypothetical place where the production of goods and services takes place D. A system that allows buyers and sellers to interact with one another