The wheat growing industry is a perfectly competitive industry because it produces a standardized product and each farmer has a very small market share.
a. true
b. false
a. true
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Luigi is willing to lend Klaus $5,000 for one year at a nominal rate of interest of 7%. Both Luigi and Klaus expect the rate of inflation to be 2% in the next year. How many dollars will Klaus have to pay Luigi in one year?
A. $350 B. $5,000 C. $5,350 D. $4,650
Which of the following is an important side effect of government licensing and other grants of monopoly power?
a. The number of options available to consumers is increased. b. Competition is enhanced. c. Firms will produce more efficiently. d. Rent-seeking is encouraged.
When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle
a. True b. False Indicate whether the statement is true or false
For widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. A tax of $15 per unit is imposed on widgets. The tax reduces the equilibrium quantity in the market by 300 units. The deadweight loss from the tax is
a. $1,750. b. $2,250. c. $3,000. d. $4,500.