Which of the following characterizes a perfectly competitive market?
A) The market demand curve is vertical.
B) The demand for each individual firm's product is perfectly elastic.
C) Each firm sets a different price.
D) Each firm produces a product slightly different from that of its competitors.
B
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Explain the relationship(s) between full employment, cyclical unemployment, the natural unemployment rate, and potential GDP
What will be an ideal response?
The direction of colonial trade produced great trade deficits with England, especially in the New England Colonies. Consequently, growth and development were stifled in colonial America
Indicate whether the statement is true or false
Lawmakers designed the burden of the FICA payroll tax to be split evenly between workers and firms. Labor economists believe that
a. lawmakers may have actually achieved their goal because statistics show that the tax burden is currently equally divided. b. the tax raises too little revenue for the government, so it should be eliminated. c. firms bear most of the burden of the tax. d. workers bear most of the burden of the tax.
A budget surplus can be used to cut taxes or pay off old debt.
Answer the following statement true (T) or false (F)