A market is perfectly competitive even if firms have the ability to set their own price as long as the price difference reflects differences in the product
Indicate whether the statement is true or false
False. If the market is perfectly competitive, there are no differences in the product.
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U.S. sugar trade agreements have fallen through. What will the likely effect be?
A. The demand for goods that use sugar will decrease. B. The demand for goods that use sugar will increase. C. The supply of goods that use sugar will increase. D. The supply of goods that use sugar will decrease.
Prices that adjust slowly are
A) auction prices. B) custom prices. C) flexible prices. D) heavy prices.
The town of Marble Falls has 10 workers, of which 8 are employed and 2 are actively seeking work. The unemployment rate in Marble Falls is
A) 5%. B) 10%. C) 20%. D) 25%.
Based on the graph showing rational expectations and the AD/AS model, when expansionary policy creates the movement to a point higher up the long-run aggregate supply curve, the result is ______.
a. higher price levels and lower RGDP
b. lower price levels and higher RGDP
c. higher price levels and no change in RGDP
d. higher RGDP and no change in price levels