In perfect competition, price is equal to marginal revenue, while in monopoly, price is greater than marginal revenue.
Answer the following statement true (T) or false (F)
True
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When poverty is defined by an absolute real income level, what will happen to the poverty rate if income per capita in a country continues to grow?
A) The poverty rate will increase forever. B) The poverty rate will eventually be zero. C) The poverty rate will increase and then decrease. D) The poverty rate will never change.
Eileen has a comparative advantage over Jan in piano tuning but not in shoe polishing. Therefore,
a. Jan must have an absolute advantage in piano tuning b. Eileen must have an absolute advantage in shoe polishing c. Jan must have a lower opportunity cost of shoe polishing d. Eileen must have an absolute advantage in shoe polishing and in piano tuning e. Eileen must have an absolute advantage in piano tuning
Suppose you believe that plaid flannel shirts are an inferior good, and want to test this with economic data. You expect to find that the income elasticity for plaid flannel shirts is:
A. greater than zero, but less than one. B. greater than one. C. less than zero. D. close to zero.
Indirect incentive
What will be an ideal response?