In perfect competition, restrictions on entry into an industry
a. do not exist.
b. apply to labor but not to capital.
c. apply to capital but not to labor.
Answer: a. do not exist.
You might also like to view...
During an inflationary gap,
A) the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP that exceeds potential GDP. B) the aggregate demand curve and the aggregate supply curve intersect at potential GDP. C) the aggregate demand curve and the aggregate supply curve do not intersect. D) real GDP is less than potential GDP. E) the price level will fall to restore the long-run equilibrium.
If a nation has a(n) _____ in the production of an item, it can produce _____ of the item with the same quantity of resources than can other nations.
A. absolute advantage; more B. mutual gain; the same amount C. special advantage; more D. comparative advantage; more
If a firm sells its output at a price greater than AC, it will earn economic profit.
Answer the following statement true (T) or false (F)
Reaching the incorrect conclusion that one event causes another because the events tend to occur together is called:
A) the scientific method. B) the economic way of thinking. C) making choices at the margin. D) the fallacy of false cause.