The entry of firms into a perfectly competitive industry causes the supply curve to
A. increase its slope.
B. decrease its slope.
C. move toward the right.
D. move toward the left.
Answer: C
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Tying products can be a profitable strategy for facilitating price discrimination only when:
a. the demands for the goods are unrelated. b. the supply of one of the tied products is low. c. the demands for the goods are related. d. the market for one of the goods is competitive.
Consumer surplus is the difference between:
a. what the consumer is willing to pay and what the consumer must actually pay to receive a good or service. b. the quantity of goods a consumer is willing to buy and the quantity of goods the consumer actually buys. c. what the producer is willing to receive and what the consumer must actually pay to receive a good or service. d. the quantity of goods a producer is willing to and the quantity of goods the consumer actually buys.
The Great Recession started in the:
a. U.S. real goods sector. b. U.S. real loanable funds market. c. Foreign exchange market. d. Global real goods market. e. All of the above.
What does each point on the production possibilities curve represent? (check all that apply)
a. Inefficiency in production b. Efficiency in production c. The maximum output of two products d. The maximum output of many products