Which of the following decisions cannot be taken by a firm in a perfectly competitive market?
A. Market exit decision
B. Market price of the product
C. Quantity of output it can produce
D. Entering a market
Answer: B
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The presumption that ability breeds economic success finds empirical support
Indicate whether the statement is true or false
For a given price, a decrease in demand will decrease consumer surplus
Indicate whether the statement is true or false
Suppose the market for loanable funds is in equilibrium. What would happen in the market for loanable funds, other things the same, if the Congress and President increased the maximum contribution limits to 401(k) and 403(b) tax-deferred retirement accounts?
a. the interest rate and quantity of loanable funds would increase b. the interest rate and quantity of loanable funds would decrease. c. the interest rate would increase and the quantity of loanable funds would decrease. d. the interest rate would decrease and the quantity of loanable funds would increase.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.