Which one of the following is not a characteristic of a perfectly competitive market?
a. Firms advertise in order to distinguish their products and increase market share.
b. Firms earn zero economic profit in the long run
c. Competing products are virtually identical.
d. Firms are price takers.
a
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Suppose society wants to increase the number of teachers in society but doesn't want to pay teachers any more in salary and benefits. This could only occur by
A) making it more expensive to become a teacher, perhaps by raising college tuition rates. B) making it less expensive to become a teacher, perhaps by offering subsidies to college tuition. C) making computers more powerful. D) increasing the income of student parents.
Refer to Figure 9.1. If the government establishes a price ceiling of $20, how many widgets will be sold?
A) 20 B) 30 C) 40 D) 50 E) 60
Medicare subsides will cause people to
A) consume less medical services than in the absence of the subsidies. B) consume more medical services than in the absence of the subsidies. C) consume the same amount medical services as they would if there were no subsidies. D) be sicker because of inferior care.
In Singapore, littering fines are strictly enforced. This is an example of a policy that
a. relies on moral codes to reduce the pollution externality. b. relies on the Coase Theorem. c. discriminates against foreigners. d. relies on incentives to reduce the pollution externality.