If the market demand increases for a good sold in a perfectly competitive market, individual firms in the market:
A. will be able to charge a higher price for their product.
B. will need to lower price in order to remain competitive.
C. will not be able to change their price.
D. will begin earning economic losses.
Answer: A
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A) 72 units of utility B) 36 units of utility C) 12 units of utility D) 6 units of utility
What is the economic criterion most often used to compare living standards across countries?
a. Real GDP growth. b. Unemployment rate. c. Incidence of AIDS. d. Rate of population growth. e. Real per capita GDP.
If the annual interest rate is 5% (.05), the price of a three-month Treasury bill would be:
A. $95.00 B. $98.79 C. $98.75 D. $97.59
Refer to the given graph. A movement from b to a along C 1 might be caused by a(n):
A. recession.
B. wealth effect of an increase in stock market prices.
C. decrease in income tax rates.
D. increase in saving.