Here is an excerpt form an editorial praising capitalism in The Economist: "It is competition that delivers choice, holds prices down, encourages invention and service, and (through all these things) delivers economic growth." To what type of competition does the writer refer? Is it the sort of competition that economists study? Explain
The competition here seems to be monopolistic competition (because it allows choice) or perfect competition (keeps prices down). More broadly, it could be the competition that occurs whenever another firm enters a market and begins to compete. This points out the difference in what economists mean by "competition," and what most others mean by the term.
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Subjective evaluations
A) lend themselves to easy measurement. B) are objective in nature. C) are directly measured by productivity. D) are based on opinion.
Saving equals
A. consumption spending minus savings. B. disposable income minus savings. C. disposable income minus consumption spending. D. disposable income minus taxes.
Which of the following statements about a firm's demand curve for labor is true?
a. It shows the relationship between the price of output and the quantity of output demanded. b. It usually has a negative slope. c. It is perfectly inelastic. d. It is derived from the labor supply curve. e. It is parallel to the demand curve for the firm's product.
High Tech, Inc. produces plastic chairs that sell for $10 each. The following table provides information about how many plastic chairs can be produced per hour. Number of WorkersChairs Produced Per Hour00110218324428530 For simplicity, assume that labor is the only input. How many workers will be hired if the hourly wage for workers is $70?
A. 3 B. 2 C. 4 D. 1