In a competitive market, the price of a product
a. is determined by buyers, and the quantity of the product produced is determined by sellers.
b. is determined by sellers, and the quantity of the product produced is determined by buyers.
c. and the quantity of the product produced are both determined by sellers.
d. None of the above is correct.
d
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Briefly explain the three functions of money
The Katrina disaster in New Orleans decreased the ability of oil companies to purify crude oil into gasoline. This caused the:
A. supply curve for gasoline to shift inward.
B. supply curve for gasoline to shift outward.
C. quantity of gasoline supplied to move in along the supply curve.
D. quantity of gasoline demanded to move out along the demand curve.
If the number of firms in a monopolistically competitive industry increases and the degree of product differentiation diminishes:
A. the likelihood of realizing economic profits in the long run would be enhanced. B. individual firms would now be operating at outputs where their average total costs would be higher. C. the industry would more closely approximate pure competition. D. the likelihood of collusive pricing would increase.
If the government has a spending flow that exceeds the revenues it collects, the government will run a ________ that year.
A. surplus B. debt C. debt and a deficit D. deficit