A perfectly competitive firm can:
A. affect the market price for its good.
B. sell as much as it can produce at the market price.
C. prevent entry of other firms into their market.
D. collude with its competitors to set prices.
Answer: B
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If the minimum wage increased, then at any given rate of inflation
a. both output and employment would be higher. b. neither output nor employment would be higher. c. output would be higher and unemployment would be lower. d. output would be lower and unemployment would be higher.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
What can the central bank of Autarkia do to lower the rate which banks charge each other for overnight loans? How will this affect the economy if it is facing a downturn?
What will be an ideal response?
Overall, the U.S. tax system (combined federal, state, and local) is:
A. highly progressive. B. slightly progressive. C. slightly regressive. D. highly regressive.