Under the theory of perfect competition, firms and buyers know the availability and prices associated with all products in the market.
Answer the following statement true (T) or false (F)
True
You might also like to view...
The following diagram shows the rate of inflation each year during a five-year span. Use this diagram to answer the next question.
How fast did prices rise in Year 2?
A. -2% B. 6% C. 4% D. 2%
Suppose that the federal government had a budget deficit of $80 billion in year 1 and $10 billion in year 2, but it had budget surpluses of $140 billion in year 3 and $20 billion in year 4. Also assume that the government uses any budget surpluses to pay down the public debt. At the end of these four years, the Federal government's public debt would have
A) increased by $250 billion. B) decreased by $70 billion. C) decreased by $62.5 billion. D) increased by $70 billion.
Least squares regression minimizes the sum of the absolute errors
Indicate whether the statement is true or false
Which of the following might be a method that the government could use to correct a negative externality?
A. an effluent fee on waste from the production of goods that create negative externalities B. encouraging overallocation of resources of production of goods that create negative externalities C. government subsidies to producers of goods that create negative externalities D. financing additional production of goods that create negative externalities