In Figure 29.1, the area that represents the total variable cost to producers under perfect competition is
A. OFCQPC.
B. OPPCCQPC.
C. OPmonopolyBQmonopoly.
D. OFEQmonopoly.
Answer: A
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The quantity of real GDP demanded equals $16.2 trillion when the price level is 90. If the price level rises to 95, the quantity of real GDP demanded equals
A) less than $16.2 trillion. B) $16.2 trillion. C) more than $16.2 trillion. D) more information is needed to determine if the quantity of real GDP demanded increases, decreases, or does not change.
Adam Smith (1776) claimed that less governmental regulation, not more, would provide incentives for individuals to allocate resources efficiently, specialize and trade
Specialization and trade would generate wealth and result in economic growth and development. Indicate whether the statement is true or false
In an open economy, there should be a
a. close positive relationship between investment and savings. b. a close positive relationship between trade deficits and investment. c. a negative relationship between trade deficits and savings. d. a positive relationship between a country's savings rate and higher domestic interest rates.
In a perfectly competitive industry, which of the following is true?
a. The competitive price is higher and quantity higher than the socially efficient point. b. The competitive price is higher and quantity lower than the socially efficient point. c. Since the industry is perfectly competitive, price and quantity are at the socially efficient levels. d. The competitive price is lower and quantity higher than the socially efficient point.