If long-run economic losses are being experienced in a competitive market,
A. More firms will enter the market.
B. Equilibrium price will rise as firms exit.
C. Normal profit will fall to zero as firms enter.
D. The market supply curve will shift to the right.
Answer: B
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One reason many people make their own pickles rather than buy them is that
a. they can maintain control over the quality during production b. the total cost of ingredients is the same as the price of store-bought pickles c. firms do not make high-quality pickles d. people place a high value on their time e. firms do not produce goods that can be made at home
Refer to the given data. If Landia and Scandia fully specialize based on comparative advantage, their aggregate output will be:
Answer the question on the basis of the following production possibilities data for Landia and Scandia:
A. 48 chips and 8 fish.
B. 40 chips and 16 fish.
C. 36 chips and 10 fish.
D. 42 chips and 12 fish.
If a graph has a line that shows the amount of outsourcing in the last ten years, it is known as
A) a pie chart. B) a demand curve for outsourcing. C) a time-series graph. D) a supply curve of outsourcing.
Intergovernmental competition obscures citizen preferences for public sector output
a. True b. False