Perfectly competitive markets are characterized by each of the following except
A. substantial barriers to entry and exit.
B. many small potential buyers.
C. many small potential sellers.
D. identical products.
A. substantial barriers to entry and exit.
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Which of the following explain the natural rate of unemployment?
i. job search ii. the Okun Gap iii. the production function A) iii only B) ii and iii C) i and ii D) i and iii E) i only
Suppose two Bertrand price competitors have different constant marginal costs. In any simultaneous move Nash equilibrium, only the lower cost firm will produce.
Answer the following statement true (T) or false (F)
Cindy discovers that when she goes to the beach, she does not have to bring her radio. She can put her blanket near someone who has a radio and listen all day (without having to carry her radio, get sand in her speakers, or buy new batteries). This is an example of:
a. private property abuse. b. external costs. c. a negative externality. d. a positive externality.
Which of the following is an example of a forward linkage?
a. A government spending program reduces the nation's level of unemployment. b. A compact disc industry creates a demand for CD players. c. The development of a shoe industry creates a demand for a leather industry. d. An increase in the population increases the demand for food. e. New educational facilities improve the literacy rate of the population.