The demand curve for a perfectly competitive firm is
A) elastic at relatively high prices and inelastic at relatively low prices.
B) perfectly elastic.
C) perfectly inelastic.
D) unitary elastic.
B
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The greater the tax wedge, the ________ the amount of employment and the ________ potential GDP
A) larger; smaller B) smaller; smaller C) smaller; larger D) larger; larger E) None of the above because the tax wedge does not affect employment or potential GDP.
The figure above shows the costs for the typical grower in the perfectly competitive turnip market. Currently, the price of a ton of turnips is $1,200. The demand for turnips increases permanently
The turnip industry experiences neither external economies nor external diseconomies. In the long run, the price of a ton of turnips ________. A) increases so it is above $1,200 B) is $1,200 and turnip growers will make normal profit C) decreases so it is below $1,200, and turnip growers will make normal profit D) decreases so it is below $1,200 and the turnip growers make an economic profit
What factors can cause the portfolio demand for money to increase?
What will be an ideal response?
Which of the following is the incorrect statement?
A. dB(Q)/dQ = MB. B. The marginal benefits curve is the slope of the total benefits curve. C. The slope of the net benefit curve is horizontal where MB = MC. D. The difference in the slope of the total benefit curve and the total cost curve is maximized at the optimal level of Q.