In a perfectly competitive market, because an individual seller tends to sell only a fraction of the total amount of the good produced:
A) he can independently determine the market price.
B) he can charge prices above the equilibrium price.
C) his individual choices do not affect market outcomes.
D) he always earns positive profit.
C
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A tradable allowance is:
A. the minimum amount set by the government that can be bought or sold in a market. B. a production or consumption quota that can be bought or sold. C. the permitted price for the trade of a particular good. D. None of these statements is true.
The aggregate supply curve shows the relationship between the aggregate quantity of output supplied by ________ and ________.
A. the world; the money supply B. the government; aggregate demand C. domestically owned firms in the economy; the interest rate D. all the firms in an economy; the overall price level
Refer to the information provided in Figure 20.4 below to answer the question(s) that follow.
Figure 20.4Refer to Figure 20.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. If the tariff is changed so that it is now ________, tariff revenue in this country will be zero.
A. $1 B. between $1 and $5 C. between $5 and $10 D. $10
If a country's real GDP is growing at 5 percent and the population is also growing at 5 percent, its:
a. per capita real GDP grows at an increasing rate. b. per capita real GDP grows at a constant rate. c. population growth will eventually exceed real GDP. d. per capita real GDP decreases at a constant rate. e. per capita real GDP does not change.