Which of the following is correct?
A. Both purely competitive and monopolistic firms are "price takers."
B. Both purely competitive and monopolistic firms are "price makers."
C. A purely competitive firm is a "price taker," while a monopolist is a "price maker."
D. A purely competitive firm is a "price maker," while a monopolist is a "price taker."
Answer: C
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Once the categories of income are totaled, the sum is called
A) GNP and is not equal to GDP. B) "total income earned" and is equal to GDP. C) "net domestic product at factor cost" and is equal to GDP. D) "GDP measured by the income approach." E) "net domestic product at factor cost" and is not equal to GDP.
National savings is important for all of the following reasons EXCEPT
A) it can be used to consume additional foreign goods. B) it can be used to fund private investment. C) it can be used to fund government investment. D) it can be used to fund foreign investment.
If we observe firms earning zero economic profits in the short run, we know that
A. the industry must be perfectly competitive. B. there must not be any barriers to entry. C. any market structure is possible since firms under any market structure can earn zero profits at some time. D. the industry must be either perfectly competitive or monopolistically competitive.
Answer the following questions true (T) or false (F)
1. Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price. 2. A positive technological change will cause the supply of a good to increase. 3. An decrease in quantity supplied is represented by a leftward shift of the supply curve.