In an environment characterized by perfect competition, we expect that ________
A) there are very few firms in the economy
B) there are many firms in the economy but a very few have the lion's share of the industry
C) the are many small firms in the economy and every single firm is a price taker
D) the government sets prices for all firms
E) none of the above
C
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A discouraged worker is one who
a. is underqualified for the current job b. dislikes the current job but is afraid to quit c. after a lengthy unsuccessful attempt to find a job drops out of the labor force d. quits his/her job because the possibility of advancement was very low e. is overqualified for the current job
Assume that there is a fixed rate of interest on contracts for borrowers and lenders. If unanticipated inflation occurs in the economy, then:
A. borrowers are hurt, but lenders benefit. B. both lenders and borrowers benefit. C. both lenders and borrowers are hurt. D. lenders are hurt, but borrowers benefit.
In the long run, firms in a competitive market make zero economic profit. This induces most firms to leave the industry
Indicate whether the statement is true or false
With higher future taxes
A) current consumption declines. B) current consumption stays the same. C) current consumption increases. D) current consumption depends on other factors.