Marshall Field's and Stern's department stores were good examples of low-cost producers operating in perfect competition.
Answer the following statement true (T) or false (F)
False
Marshall Field's and Stern's department stores are examples of high-cost producers in a perfectly competitive market, which is why they went out of business. Walmart and Best Buy are examples of low-cost producers.
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Suppose that Germany, France, Estonia, and India all have the same production possibilities, illustrated in the figure above. Based on the production points in the figure, Germany is most likely to expand its PPF to
A) PPF3 or PPF2. B) PPF3. C) PPF1. D) PPF1. or PPF2. E) PPF2.
The origin of the idea of a trade-off between inflation and unemployment was a 1958 article by
A) A.W. Phillips. B) Edmund Phelps. C) Milton Friedman. D) Robert Gordon.
Some colleges charge all students the same fee for a weekly dining services meal plan. Suppose that students differ by how much food they consume each week. For example, members of the women's swimming team consume, on average, twice as much food as the average female college student, and the average male college student consumes 20 percent more food than the average female college student. The
dining services fee is most like a(n) a. excise tax that conforms to the benefits principle. b. excise tax that violates the benefits principle. c. lump-sum tax that conforms to the benefits principle. d. lump-sum tax that violates the benefits principle.
If the production of a good generates a positive externality, then:
A. there will be deadweight loss at the market equilibrium quantity. B. production of the good is harmful. C. total economic surplus will be maximized at the market equilibrium quantity. D. the government should tax producers of the good.