Answer the following questions true (T) or false (F)
1. In reality, because few markets are perfectly competitive, some loss of economic efficiency occurs in the market for nearly every good or service.
2. Market power in the United States causes a huge loss of economic efficiency.
3. A profit-maximizing monopoly produces a lower output level than would be produced if the
industry was perfectly competitive.
1. TRUE
2. FALSE
3. TRUE
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The longer the time that has elapsed since the price of a good changed, the
A) more elastic the demand for that good. B) steeper the demand curve. C) less elastic the demand for that good. D) smaller the amount of that good bought. E) fewer substitutes available for the good.
Which of the following is collected only by local and state governments?
A) Excise tax B) Personal income tax C) Toll taxes D) Payroll tax
The "short run" may vary in length from industry to industry
a. True b. False
Which of the following relationships is likely to exhibit negative correlation?
A) The relationship between inflation in the U.S. and traffic congestion in China B) The relationship between amount saved with a bank and the interest earned C) The relationship between the amount of precipitation in a year and the number of umbrellas sold D) The relationship between level of professional training and unemployment