Perfect competition is characterized by all of the following except
A) heavy advertising by individual sellers.
B) homogeneous products.
C) sellers are price takers.
D) a horizontal demand curve for individual sellers.
Answer: A
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Americans would probably be supportive of
a. strict controls on hours of work. b. limits on income potential. c. mandatory work limits. d. loose controls on economic activities.
A consumer will achieve the highest level of utility possible when she consumes
A. at a point to the left of the budget constraint. B. at the point at which the indifference curve crosses the budget constraint. C. just below the point where the indifference curve crosses the budget constraint. D. at the point at which the highest indifference curve is tangent to the budget constraint.
Which of the following is not an example of Pareto optimality?
A. The city council approves a tax increase on all residents in order to make repairs to one remote residential street. B. The Beauregard twins eagerly switch cell phone cases with each other. C. Despite complaints from members, Harmony Industries builds a sewage treatment plant next to a country club. D. Timmy tricks Jonathan into trading a genuine Brooks Robinson baseball card for a fake Pete Rose baseball card.
A depreciation of the dollar causes
A. an increase in U.S. imports. B. an increase in the prices of U.S. exports. C. a decrease in U.S. exports. D. an increase in the prices of U.S. imports.