When externalities are present in a market, the well-being of market participants
a. and market bystanders are both directly affected.
b. and market bystanders are both indirectly affected.
c. is directly affected, and market bystanders are indirectly affected.
d. is indirectly affected, and market bystanders are directly affected.
c
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In the labor market, as wages rise, households
A) decrease the quantity of labor supplied. B) increase the quantity of labor supplied. C) decrease the quantity of labor demanded. D) increase the quantity of labor demanded. E) increase the supply of labor.
Which of the following statements is true?
A) The total cost of production in a perfectly competitive market can be minimized only when the marginal costs across firms in the market are different. B) When a competitive market is allowed to operate efficiently, firms end up producing goods using the least amount of scarce resources. C) Under a perfectly competitive framework, a ruling authority is essentially required to dictate goals for the betterment of society. D) A firm interested in maximizing profits in a perfectly competitive market will produce output at a level where marginal revenue is equal to the price and greater than the marginal cost.
In order for a firm to receive monopoly profits, there must be
A) homogeneous products. B) barriers to market entry. C) mutual interdependence among firms. D) free entry and exit to the market.
The high unemployment of 2008-2010 caused a substantial decrease in inflation which created fears of deflation
a. True b. False Indicate whether the statement is true or false