A perfectly competitive market arises when
A) the market demand is small relative to the output of a firm.
B) there are many buyers but few sellers.
C) the market demand is very large relative to the output of one seller.
D) a firm has control over a unique resource.
E) each of the many firms produces a slightly different product.
C
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Over long periods of time, the cyclical rate of unemployment, on average, ________
A) approaches infinity B) approaches a value of one C) should be close to zero D) approaches the natural rate
In the short run, which one of the following causes a competitive firm to hire more labor?
A) an increase in wage rate B) an increase in the output price C) a specific tax imposed on the firm's output D) a decrease in the output price
A useful economic model
A) utilizes only the two most important factors to analyze the problem under consideration. B) generates statements that are incapable of refutation. C) represents every detail of the real world. D) yields usable predictions and implications for the real world.
The discovery of a large amount of previously-undiscovered oil in the U.S. would shift
a. the long-run aggregate-supply curve to the right. b. the long-run aggregate-supply curve to the left. c. the aggregate-demand curve to the left. d. None of the above is correct.