Perfect competition ________ an efficient outcome because ________
A) achieves; total surplus is maximized
B) achieves; marginal benefit equals marginal cost
C) does not achieve; firms do not get to choose their price
D) does not achieve; firms produce goods with perfect substitutes
E) Both A and B are correct.
E
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Farmers can choose to produce eggs or milk. If there is an increase in the price of milk then what will be the effect in the egg market?
a. The quantity of eggs demanded will increase. b. Egg demand will decrease. c. Egg supply will increase. d. Egg supply will decrease.
The California gold rush resulted in an increase in the amount of money in circulation and an increase in prices across the country
Indicate whether the statement is true or false
What does inflation do to the value of the oversimplified multiplier?
A. Inflation increases the value of the multiplier above the value of the oversimplified formula. B. Inflation does not change the value of the multiplier. C. Inflation decreases the value of the multiplier below the value of the oversimplified formula. D. Inflation increases the value of the multiplier unless the level of unemployment also rises.
Name the three types of unemployment.
What will be an ideal response?