Jenny sells lemonade in front of her house in the summer. Several other kids in Jenny's neighborhood also run lemonade stands in the summer. The lemonade market in Jenny's neighborhood is more likely to be perfectly competitive if:
A. each lemonade stand sells the same kind of lemonade.
B. some of the neighborhood parents build elaborate booths for their kids' stands while some kids sell from makeshift tables.
C. each stand tries to get more customers by offering different varieties of lemonade and snacks.
D. all of the kids advertise heavily.
Answer: A
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Which of the following constitutes a transfer payment?
a. Income taxes b. Corporate salaries c. Fiscal spending d. Dividend payments e. Welfare benefits
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A change in the quantity demanded of Real GDP is graphically represented as a
A) shift in the AD curve. B) movement from one point on the AD curve to another point on the same curve. C) movement from a point on the AD curve to a point on the SRAS curve. D) shift in the real balance effect curve. E) shift in the interest rate effect curve.