Economists do not consider the smartphone industry perfectly competitive because
A. the government strictly regulates entry and exit.
B. smartphone manufacturers each have a small market share.
C. there are a large number of smartphone manufacturers.
D. smartphones are heterogeneous.
Answer: D
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In the United States, the number of hours worked per person has decreased since 1800. How would growth rates since 1800 be different if they were calculated for real GDP per capita instead of GDP per hour worked?
What will be an ideal response?
The law of comparative advantage explains why a nation will benefit from trade when
a. it exports more than it imports. b. its trading partners are experiencing offsetting losses. c. it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer. d. it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.
Suppose that when a perfectly competitive firm produces 500 units of output a day, it earns an economic loss. If the price of each unit of output is $1.50, then, in the short run, it's clear that this firm:
A. should shut down. B. is not maximizing its profit. C. should produce more than 500 units a day. D. should not shut down if its total variable cost is less than $750.
Differentiate between “demand-pull” and “cost-push” inflation in the basic aggregate demand and aggregate supply model.
What will be an ideal response?