As the number of firms in an oligopoly increases, the
a. price approaches marginal cost, and the quantity approaches the socially efficient level.
b. price and quantity approach the monopoly levels.
c. price effect exceeds the output effect.
d. individual firms' profits increase.
a
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According to Say's Law, in the aggregate
a. demand creates its own supply b. the production of output will generate exactly enough income to purchase what has been produced c. the economy is incapable of producing output fast enough to ensure full employment d. full employment cannot be sustained without government action e. consumer saving prevents the economy from reaching full employment
Which of the following is a difference between corporations and partnerships?
a. Partnerships are subject to double taxation; corporations are not. b. With partnerships, ownership rights are divisible and easily transferable; this is not true for corporations. c. Corporate owners face limited liability; owners of partnerships do not. d. Corporations always have more owners than partnerships.
When a country's current account balance is added to its capital account balance, the sum should be:
A. positive. B. zero. C. negative. D. twice the current account.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.