The prices of most services have risen much faster than inflation in recent years because
a. wages and salaries of service providers have risen much faster than inflation.
b. wages and salaries of service providers have risen but their productivity has not.
c. the productivity of service providers has risen dramatically.
d. the demand for services has risen.
b
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In a perfectly competitive market, the price in the long run:
A) will always be more than the minimum average total cost of the industry. B) will always be less than the minimum average total cost of the industry. C) will always equal the minimum average total cost of the industry. D) will always equal the average fixed cost of the industry.
The airline and trucking industries are two examples of industries that were regulated because they were natural monopolies
Indicate whether the statement is true or false
When a surplus exists in a market, sellers
a. raise price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated. b. raise price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated. c. lower price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated. d. lower price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.
Although pollution is caused by a failure of the market, many economists believe that the best way to protect the environment is to utilize the price mechanism
a. True b. False Indicate whether the statement is true or false