When the price of Italian wine rises, this change is reflected in the U.S. CPI but not in the U.S. GDP deflator
a. True
b. False
Indicate whether the statement is true or false
True
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If perfectly competitive lawn care firms are making an economic profit, then
A) wages will be bid up until the economic profit are gone. B) the firms must be superior and will continue to make an economic profit. C) new firms will enter the industry. D) they are not equating marginal revenue to marginal cost. E) government regulation will be imposed to decrease their profit.
An increase in growth rates will cause the production possibilities curve to
A) shift inward. B) become steeper. C) become flatter. D) shift outward.
Market power:
A.) Is the same for all market structures. B.) Means that a firm is a price taker, not a price setter. C.) Is the ability to alter the market price of a good or service. D.) Only exists for a monopoly.
A price ceiling below the market clearing price results inI.excess quantity demandII.excess quantity suppliedIII.entry of new producers
A. I only B. II only C. III only D. Both I and III