Which of the following is false of perfectly competitive firms?
a. A perfectly competitive market is approximated in highly organized markets for securities and agricultural commodities.
b. The perfectly competitive model does not require any knowledge on the part of individual buyers and sellers about market demand and supply curves.
c. Because perfectly competitive firms are price takers, each firm's demand curve remains unchanged even when the market price changes.
d. In a perfectly competitive market, marginal revenue is constant and equal to the market price.
c
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Given the consumption equation C = $500 billion + 0.80Y, an increase in national income from $6,000 billion to $7,000 billion will cause consumption to increase by
a. $800 billion b. $1,000 billion c. $1,300 billion d. $1,500 billion e. $1,800 billion
The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?
a. work and wages b. work and leisure c. wages and productivity d. technology and wages
When the value of the dollar decreases, the net effect on the economy
A. will be decrease in short-run aggregate supply and an increase in aggregate demand. B. will be an increase in short-run aggregate supply and a decrease in aggregate demand. C. will be an increase in both aggregate demand and aggregate supply. D. will be a decrease in both aggregate demand and aggregate supply.
"Beaten paths" from one country to another:
A. discourage migration to that country because of a perception that all of the good jobs have already been taken. B. discourage migration by increasing the cost of moving. C. encourage migration by providing employment contacts and job information. D. are more prevalent the greater the distance between the two countries.