Firms in a perfectly competitive market:
A. sell a differentiated product.
B. sell homogeneous products.
C. usually have large advertising budgets.
D. try to attract customers away from their competitors.
Answer: B
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If the government raises income taxes, then the labor
A) supply curve shifts rightward. B) demand curve shifts leftward. C) demand curve shifts rightward. D) supply curve shifts leftward. E) Both answers B and D are correct.
Excess demand of a product exerts __________pressure on prices
a. Zero b. No c. Upward d. Downward
A factory is an example of:
a. capital. b. scarcity. c. an enterprise. d. land resources. e. output.
Violations of the law of demand are assumed to occur
a. regularly. b. only when goods are Giffen goods. c. only when the substitution effect dominates the income effect. d. All of the above are correct.