Competitive price-taker firms respond to changing market conditions by varying their
a. price
b. output
c. market share
d. information
e. advertising campaigns
B
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Which of the following statements is true?
A) Gold is not a scarce resource. B) Both life-saving drugs and ice cream are examples of scarce goods. C) If a scarce resource is given away for free, everyone will be able to consume it. D) Scarcity means that there is an imbalance between unlimited resources and limited wants.
According to the structural stagnation hypothesis, structural stagnation has only short-run causes.
Answer the following statement true (T) or false (F)
Suppose the GDP is in equilibrium at full employment and the MPC is .80. If government wants to increase its purchase of goods and services by $16 billion without changing equilibrium GDP, taxes should be:
A. Increased by $20 billion B. Reduced by $16 billion C. Increased by $16 billion D. Reduced by $20 billion
When negative externalities are present, the firm's internal costs always
a. exceed the firm's external costs b. are less than the firm's external costs c. equal the firm's external costs d. understate the actual cost of using society's resources producing the good e. overstate the actual cost of using society's resources producing the good