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
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Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right. At the extreme right end, all 100 voters lie to the left. 
width="553" />If Candidate Y is running against Candidate Z: A. Neither candidate has any incentive to move. B. Both candidates will have an incentive to move to the left. C. Candidate Y will have an incentive to move to the left, and Candidate Z will have an incentive to move to the right. D. Both candidates will have an incentive to move toward each other's position.
On average the productivity of an individual usually peaks when the individual is about
A) 20. B) 30. C) 50. D) 60.
Giffen goods have positively-sloped demand curves because they are
a. inferior goods with no substitution effect. b. normal goods with no substitution effect. c. inferior goods for which the substitution effect outweighs the income effect. d. inferior goods for which the income effect outweighs the substitution effect.
List the four determinants of an economy's productivity