Which of the following most closely approximates the conditions of a competitive price-searcher market?
a. the market for Grade A eggs, which is characterized by a large number of firms producing a homogeneous product
b. the restaurant industry, which is characterized by firms producing a differentiated product in a market with low entry barriers
c. local cable television service, where a licensed supplier competes with firms offering satellite service
d. the market for jumbo aircraft, where one major domestic firm competes with one major foreign firm
B
You might also like to view...
Net investment is the
A) total amount of gross investment minus depreciation. B) value of software and other network related products. C) profit or loss in the stock market. D) value of the depreciated capital multiplied by the changes in the price level.
During normal times, if the marginal propensity to consumer is 3/4, and the government borrows $10 billion in order to increase spending by that amount, real output will expand by
a. more than $40 billion, because both the additional borrowing and the additional spending will stimulate real output. b. $40 billion, because the net multiplier will be 4. c. less than $40 billion, because the additional borrowing will place upward pressure on real interest rates, weakening the impact of the multiplier. d. $10 billion, because during normal times, the government can borrow funds without any increase in interest rates.
Lori, who currently owns stock in four companies, has decided to expand her portfolio by purchasing stock in virtually every company that sells stock. In doing so, Lori will
a. increase the risk of her portfolio. b. decrease some, but not all, of the risk of her portfolio. c. decrease all of the risk of her portfolio. d. leave the risk of her portfolio unchanged from its present level.
In order to estimate the current annual GDP, economists:
A. multiply the quarterly estimate by four. B. take an average of the last four quarters measured. C. adjust quarterly GDP estimates to account for seasonal patterns. D. adjust it for changes in price level.