Is it theoretically possible for general equilibrium to be attained? Is it likely that general equilibrium will be attained? Explain
What will be an ideal response?
Yes it is theoretically possible for a general equilibrium to be attained. But it is highly unlikely that general equilibrium will be attained, as all the assumptions of perfectly competitive markets are not likely to hold.
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In the long run, most economists agree that a permanent increase in government spending leads to ________ crowding out of private spending
A) complete B) partial C) no D) more than complete
The basic organizing framework for both microeconomic and macroeconomic models is
A. purely competitive markets. B. government planning of the economy. C. demand and supply. D. democratic socialism. E. All of these responses are correct.
Which of the following is a commonly-cited benefit of advertising?
a. Advertising can be a signal of the quality of a product. b. Advertising impedes competition. c. Advertising reduces the deadweight loss associated with monopolistic competition. d. Advertising encourages free entry, which increases profits.
When the exchange rate moves from $1 = CAD1.5 to $1 = CAD1.66, it implies:
a. the U.S. dollar has depreciated in relation to the Canadian dollar. b. U.S. imports of Canadian goods will rise. c. the dollar price of the Canadian dollar has risen. d. the Canadian dollar has appreciated in relation to the U.S. dollar. e. Canadian imports of U.S. goods will rise.