When economists describe a production process as capital-intensive, they mean that the
A. Process uses a high ratio of machinery and other capital to labor.
B. Process needs a greater emphasis on labor in order to increase productivity.
C. Capital used in the process tends to wear out (depreciate) very rapidly.
D. Capital used in the process reflects the most advanced technology.
Answer: A
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When firms charge different prices to different consumers for the same good or service, it is referred to as ________
A) price bias B) shadow pricing C) predatory pricing D) price discrimination
Under perfect competition, existing firms leave the market in the long run if the price falls below total fixed cost
a. True b. False Indicate whether the statement is true or false
The primary function of the International Finance Corporation (IFC) is to:
A. provide U.S. surplus food to low-income countries. B. provide short-term loans to poor countries to finance international trade deficits. C. make infrastructure loans, that is, loans for highways, schools, communication facilities, and so forth. D. make loans to private enterprises in the DVCs.
In comparing monopolistic competition to perfect competition, one can conclude that the lack of free entry is the key to having the ability to set price
Indicate whether the statement is true or false