If an individual perfectly competitive firm charges a price above the industry equilibrium price, it will
A. sell part of what it can produce and gain less revenue than competitors will.
B. not sell any of what it produces.
C. sell all that it can produce and gain equal revenue with competitors.
D. sell all that it can produce and gain more revenue than competitors.
Answer: B
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Holding other factors constant, an increase in the tax rate on revenue generated by capital will:
A. decrease national saving. B. increase national saving. C. increase investment. D. decrease investment.
The relationship between the interest rate and the precautionary demand for money is
A) nonexistent. B) inverse. C) positive. D) positive sometimes and inverse other times.
For the short-run Phillips curve to remain relatively stable, then changes in real GDP must occur primarily as a result of shifts in: a. changes in aggregate demand
b. changes in real wages caused by changes in the supply of labor. c. changes in inflationary expectations. d. changes in aggregate supply.
Which of the following statements correctly summarizes a difference between the layperson's and the economist's views of the net benefits of trade?
A. Economists focus on trade in manufactured goods while laypeople also focus on trade involving the services of people who manage the trade. B. Economists often argue that the gains from trade in the form of low consumer prices tend to be widespread and not easily recognizable while the costs in jobs lost tend to be concentrated and readily identifiable. C. Economists often argue that most U.S. jobs are at risk of outsourcing while laypeople intuitively recognize that inherent in comparative advantage is that each country has a comparative advantage in the production of some good. D. Economists most often argue that the costs of trade outweigh the benefits while laypeople often argue that the benefits of trade outweigh the costs.