A simplified representation of the real world that is used to explain economic phenomena is a(n)
A) viewpoint.
B) model.
C) assumption.
D) implication.
B
You might also like to view...
Suppose a perfectly competitive market is in a short-run equilibrium. If some firms exit the market, the profit of the remaining firms ________; if some firms enter the market, the profit of each existing firm ________
A) decreases; is unchanged B) increases; decreases C) increases; is unchanged D) is unchanged; is unchanged E) decreases; increases
Which of the following is an accurate statement about a perfectly competitive market?
a. The market has few buyers and sellers. b. Suppliers have significant control over prices. c. Each buyer purchases a large percent of the total amount sold. d. At the market price, the firm’s demand curve is extremely elastic.
A family that earns $20,000 a year pays $400 a year in taxes on clothing. A family that earns $40,000 a year pays $200 a year in taxes on clothing. The tax on clothing is
A. a progressive tax. B. a regressive tax. C. a proportional tax. D. a benefits-received tax.
A perfectly competitive firm's output is currently such that its marginal revenue is $5 and marginal cost is $4. Assuming profit maximization, the firm should
A. cut price and increase output. B. raise price and decrease output. C. leave price unchanged and decrease output. D. leave price unchanged and increase output.