If all conditions for a perfectly competitive market are met,
A) firms face sunk cost when entering the market.
B) firms' demand curves are horizontal.
C) the market demand curve is horizontal.
D) the firms' demand curves are downward-sloping.
B
You might also like to view...
The IS curve shifts to the right when ________
A) autonomous consumption decreases B) taxes increase C) autonomous investment increases D) all of the above E) none of the above
Those who favor a passive approach to policy believe that:
a. discretionary monetary policy can be used to help the economy since monetary policy lags are short b. discretionary fiscal policy can be used to help the economy since fiscal policy lags are short. c. lags associated with implementing policies are too long and unstable for discretionary policy to be effective. d. despite the lags involved, implementing discretionary policy is preferable to inaction. e. automatic stabilizers cannot be used to help the economy since monetary policy lags are short.
When making income comparisons across countries, economists generally prefer to use
a. the exchange rate conversion method. b. the consumer price index ratio method. c. the purchasing power parity method. d. the interest rate differential conversion method.
A mechanism for reallocating risk is:
A. risk premiums. B. risk pooling. C. dividend pooling. D. None of these statements is true.