In the short run, we assume that the number of firms in a perfectly competitive market:
A. varies if perfect information is present.
B. is fixed.
C. is equal to the number of firms in the long-run.
D. varies more than the long-run equilibrium.
Answer: B
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When an economy's government goes from running a budget deficit to running a budget surplus, the economy's long-run growth prospects are improved
a. True b. False Indicate whether the statement is true or false
For which pairs of goods is the cross-price elasticity most likely to be positive?
a. canoes and kayaks b. pizza and college textbooks c. Halloween candy and rain coats d. cats and cat food
According to classical economists
A. Say's law is not valid. B. wage levels are always "sticky." C. demand stimulus is needed to produce full employment. D. unemployment will not be a serious problem in a market economy.
Which of the following is NOT a likely market solution to the lemons problem?
A) average cost pricing B) product warranty C) industry standard D) product certification