Perfect income equality means:
A. people earn different amounts based on what they do, but everyone in the same job earns the same amount.
B. everyone earns the exact same amount.
C. everyone enjoys exactly the same standard of living.
D. everyone earns exactly what they're worth.
Answer: B
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Which of the following statements is correct?
A) The higher the price level, the larger is the quantity of real GDP demanded. B) An increase in exports shifts the aggregate demand curve leftward. C) A tax increase shifts the aggregate demand curve leftward. D) An increase in people's expected future income shifts the aggregate demand curve leftward. E) An increase in potential GDP shifts the aggregate demand curve rightward.
Where do economic agents such as individuals, firms, and nations interact with each other?
A) in any arena that brings together buyers and sellers B) in any location where transactions can be monitored by consumer groups and taxed by the government C) in any physical location where people can physically get together for selling goods, such as shopping malls D) in public locations monitored by the government
Why do the perfectly competitive firms earn only normal profits in the long run?
a. Entry or exit is barred b. Firms produce identical products c. A large number of buyers and sellers exist in the market d. Aggregate demand remains constant e. There is free entry and exit of firms
These are the cost and revenue curves associated with a firm.
If the firm in the given graph were to produce Q1 and charge P3, the area A would represent:
A. producer surplus. B. deadweight loss. C. consumer surplus. D. profits.