Which of the following is not a result of government price controls?
A) Some people win and some people lose.
B) A deadweight loss will occur.
C) Price controls benefit poor consumers but harm producers and wealthy consumers.
D) Price controls decrease economic efficiency.
C
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Which of the following conditions ensures that excess profits cannot persist in a perfectly competitive market over the long run?
A) Large number of firms in the industry. B) Outputs of the firms are perfect substitutes for one another. C) Complete information is available to all market participants. D) Ease of entry into the market.
Which of the following statements regarding price elasticity of supply and the length of time for adjustment is FALSE?
A) The longer is the time period for adjustment, the greater is the price elasticity of supply. B) The longer is the time period for adjustment, the less is the extent to which resources flow into (or out of) an industry through expansion (or contraction) of existing firms. C) The longer is the time period for adjustment, the greater is the extent to which entry or (exit) of firms increases or (decreases) production in an industry. D) The shorter the time period for adjustment, the greater is the price elasticity of supply.
Turkey joined the European Union (EU) in 2007 after implementing the necessary political and economic policy changes.
Answer the following statement true (T) or false (F)
Which of the following would be studied by a macroeconomist rather than a microeconomist?
A. shipping rates B. price of corporate stock C. market price of Japanese cars D. unemployment rate in the nation