A perfectly competitive firm is a price
a. giver.
b. taker.
c. maker.
d. leader.
b
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A country's budget constraint states that
A) the value of exports must be equal to the value of imports. B) real income in the exporting country must be equal to real income in the importing country. C) unless a country engages in trade, the value of exports cannot exceed the value of goods produced. D) a country will engage in trade only if the value of imports exceed the value of exports. E) a country will engage in trade only if the value of exports exceeds the value of imports.
Economists emphasize the importance of equilibrium in markets because
a. trading in markets can only occur at the equilibrium price and quantity b. the behavior of buyers and sellers will automatically guide the market toward the equilibrium price and quantity c. all buyers and sellers are better off at the equilibrium point than any other price and quantity combination d. it represents a compromise between sellers hoping for low prices and buyers searching for high prices e. it is the only price-quantity combination that guarantees that the poorest members of society can purchase the good or service
Exhibit 6-1 Total utility for good X Total utility (utils)0 80 120 148 160 155 Quantity consumed per day0 1 2 3 4 5 As shown in Exhibit 6-1, the law of diminishing marginal utility is first observed at the:
A. first unit. B. second unit. C. third unit. D. fourth unit.
A monopsonist in the labor market has
A. an upward sloping labor supply curve. B. a perfectly elastic labor supply. C. an upward sloping marginal revenue product curve. D. a decreasing average variable cost.