Many economists argue that there is imperfect information in the market and that this is a failure of the market mechanism
a. True
b. False
Indicate whether the statement is true or false
True
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The oil depletion formula discussed in the chapter uses "proven resources" in its calculation. Explain what these "proven resources" are with respect to known and unknown oil reserves, and economical and uneconomical oil extraction met
What will be an ideal response?
If high incomes inspire more saving than low incomes ________
A) the average propensity to consume falls as income rises B) the marginal propensity to consume rises as income rises C) autonomous consumption falls as income rises D) the average propensity to consume rises as wealth rises
Which of the following can shift the labor demand curve to the right?
A. decrease in product price B. increase in wages C. increase in productivity D. decrease in the marginal product
In the long run, a monopolistically competitive firm
A) earns positive economic profits. B) earns zero economic profits. C) earns negative economic profits. D) can have positive, zero, or negative profits.