Each firm in perfect competition:
A. follows the pricing decisions of other firms.
B. follows the output of other firms.
C. follows the reactions of competitors.
D. sets quantity based on market price.
Answer: D
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GDP is a measure of the total output of an economy.
Answer the following statement true (T) or false (F)
The proposition that in the long run when real GDP equals potential GDP, an increase in the quantity of money leads to an equal percentage increase in the price level is the called the quantity theory of
A) constant velocity. B) the long run. C) money. D) inflation. E) equal change.
When there is diminishing marginal utility of money, a person would prefer to be poor
Indicate whether the statement is true or false
Which of the following statements is true?
A. Worldwide, no countries are catching up to the United States with respect to GDP per capita. B. The poverty line has not been adjusted at all in the past 35 years. C. Income distributions have not changed much in the United States in the past 35 years. D. Progressive income tax structures are one method of making incomes more equal.