How does the textbook's notion of competition as a process differ from the model of perfect competition?
A) The process notion allows for uncertainty and incomplete information; perfect competition doesn't.
B) The process notion allows for price searching activity; perfect competition doesn't.
C) The process notion allows for product differentiation; perfect competition doesn't.
D) The process notion allows for a small number of participants; perfect competition doesn't.
E) For all of the above reasons.
E
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For a perfectly competitive rancher in Wyoming, if the price does not change, an economic profit could turn into an economic loss if the
A) average total cost curve shifts downward. B) average total cost curve does not change. C) average total cost curve shifts upward. D) marginal cost curve shifts downward. E) average fixed cost decreases.
All of the following were important structural changes in American capitalism during the period 1960–95 except
(a) New technology in the form of automated (machine-guided) production processes (b) A capital-labor accord which allowed workers to share in productivity gains through wage increases, particularly during the 1950s and 1960s (c) An increase in self-sufficiency as the nation reduced its economic interdependence with other nations (d) A large and central role for government in directing the post-war economy
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model? a. The GDP Price Index rises and nominal value of the domestic currency
falls. b. The GDP Price Index falls and nominal value of the domestic currency remains the same. c. The GDP Price Index rises and nominal value of the domestic currency remains the same. d. The GDP Price Index rises and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
Critics of advertising argue that advertising leads to less elastic demand for products and a larger markup of price over marginal cost
a. True b. False Indicate whether the statement is true or false