A firm in a perfectly competitive market:
a. ?can decrease its supply to increase the market price.
b. ?can increase its supply to lower the market price.
c. ?has to accept the market price for its product.
d. ?has to lower the price of its product to sell more output.
e. ?can raise the price of its product and sell more output.
Ans: c. ?has to accept the market price for its product.
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Suppose that the development of a new, improved seed allows all corn farmers in the United States to increase their yields per acre. Since the demand for corn is relatively inelastic, the price of corn in a perfectly competitive market is likely to
a. not change, but farm revenues will fall. b. not change, but farm revenues will rise. c. increase, and farm revenues will fall. d. decrease, and farm revenues will fall.
Why does the Fed have imperfect control over the money supply over short periods?
a. Because of unpredictable changes in reserve requirements b. Because the public responds to open market operations in unpredictable fashions c. Because the Fed does not know how much reserves will change when it buys or sells securities d. Because of unpredictable changes in public desire to hold cash and banks' desires to hold reserves
The sum of internal and external costs is
A) private cost. B) social cost. C) opportunity cost. D) common property.
Refer to the information provided in Table 22.1 below to answer the question(s) that follow. Table 22.1
Refer to Table 22.1. The labor force equals
A. 14,000 people. B. 17,000 people. C. 18,000 people. D. 21,000 people.