The market demand curve in a perfectly competitive market is ________ and the demand curve for a perfectly competitive firm's output is ________
A) downward sloping; downward sloping
B) downward sloping; horizontal
C) horizontal; downward sloping
D) horizontal; horizontal
E) downward sloping; upward sloping
B
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When two variables move in opposite directions, the curve relating them is
a. upward sloping, and we say the variables are positively related. b. upward sloping, and we say the variables are negatively related. c. downward sloping, and we say the variables are positively related. d. downward sloping, and we say the variables are negatively related.
Refer to Figure 17-1. Suppose the market price of doilies rises to $3. What happens to the curve given in the diagram?
A) There will be a movement along the curve. B) Nothing, because labor's productivity has not changed. C) The curve shifts to the right. D) We cannot answer the question without knowing if Dale would want to hire more workers.
Suppose a monopsonist hires its second worker and this hiring has a marginal factor cost of $75 per day. If the market wage is now $62.50 per day, what was the first employee earning when she worked alone?
a. $40. b. $45. c. $50. d. $55. e. $60.
Suppose, in dollar terms, nominal GDP increased approximately 4 percent during a given year, and real GDP decreased 1 percent. Which of the following best explains these events?
a. The money supply increased approximately 4 percent. b. Prices decreased approximately 3 percent. c. Prices increased approximately 4 percent. d. Prices increased approximately 5 percent.