In a perfectly competitive market, a decrease in the market demand will ultimately lead to ________ firms in the market and a ________ market equilibrium quantity.
A) more; higher B) fewer; lower C) more; lower D) fewer; higher
B) fewer; lower
You might also like to view...
In a simple Keynesian model, a decrease in income leads to a decrease in
A) consumption. B) investment. C) the price level. D) the money supply.
Which of the following statements is true?
A) Indirect business taxes are a component of national income because when added to the other components of national income, the sum must equal GDP. B) Indirect business taxes must be subtracted from national income to yield a figure equal to GDP. C) Indirect business taxes are a part of national income because they are considered a payment to a factor of production. D) Indirect business taxes are not part of national income because they are not considered a payment to a factor of production.
If external benefits exist:
A.) The market will overproduce the good. B.) Private demand will exceed social demand. C.) Market demand will understate social demand. D.) The market will generate the optimal outcome.
Suppose the government of Japan increases its expenditure on goods and services. In the short run, this increase will
a) shift the AD curve in Japan rightward b) shift the AD curve in Japan leftward c) cause the price level in Japan to fall d) none of the above is correct