All of the following are characteristics of perfect competition EXCEPT
A. homogeneous products.
B. each firm is a price taker.
C. a lack of barriers.
D. product differentiation.
Answer: D
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Median voter decisions may not yield efficient allocations of resources because:
a. votes are allocated differently than income. b. externalities may cause private and social costs to diverge. c. free riders will cause too few public goods to be produced. d. the median voter may not be the same as the mean voter.
Explain the circumstances under which a firm will produce output while incurring a short-run loss, and the circumstances under which it will shut down while incurring a short-run loss
A GDP price index of 130 in year 2 means that ________.
A. prices in year 2 are on average 130% higher than in the base year B. prices in year 2 are on average 13 times that in the base year C. nominal GDP is 130% higher than real GDP in year 2 D. prices in year 2 are on average 30% higher than in the base year
If the price level in the current year is much higher than the expected price level in an economy, _____
Fill in the blank(s) with the appropriate word(s).