Perfect competition is characterized by
A) many buyers and sellers.
B) a small number of firms.
C) differentiated products of firms in the industry.
D) high barriers to entry.
Answer: A) many buyers and sellers.
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With reference to the difference between a change in demand and a change in quantity demanded, which of the following is TRUE?
A) If a good's price goes down, then demand for the good will decrease. B) If a good's price goes down, then quantity demanded will increase. C) If demand increases, then the demand curve will shift to the left. D) If price rises and quantity demanded decreases, then the demand curve will shift to the left.
The labor force in the United States is defined as the adult population who are either employed or unemployed
a. True b. False Indicate whether the statement is true or false
Some prescription drugs sell for more in the United States than they do in other countries. Which of the following statements about this issue is most likely to be true?
a. Drug companies are engaging in price discrimination, and this practice certainly reduces global social welfare. b. Global social welfare could be improved if the price in the United States were reduced to the price charged in other countries. c. Global social welfare could be improved if the price in the other countries were increased to the price charged in the United States. d. Drug companies are engaging in price discrimination, but this might improve global social welfare if it gives more people access to the drugs.
To operate efficiently, an economy generally "needs" ________ unemployment.
A. cyclical B. frictional C. structural D. seasonal