Which of the following statements is true of competitive market equilibrium?
A) The determination of equilibrium price and quantity is independent of the demand for goods.
B) Social surplus is minimized at the competitive equilibrium.
C) At the competitive equilibrium, there are no unexploited gains from trade.
D) A competitive equilibrium is determined only by a few large sellers in the market.
C
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A country opens up to trade and exports computer chips. In the computer chip market, surplus has been redistributed from
A) consumers to producers. B) producers to consumers. C) producers to government. D) government to consumers.
Instrumental variables can be used to solve misspecification errors related to omitted variables.
Answer the following statement true (T) or false (F)
When a consumer is able and willing to buy or service, he or she creates which of the following?
a) consumption b) demand c) elasticity d) Allocation
As GMB and VolgaBus compete, GMB selects a new and superior brake technology. VolgaBus prefers a different brake technology, but feels trapped into selecting the same one used by GMB. This is due to
A. adverse selection. B. secure strategy. C. first-mover advantage. D. extension form.