If the resource market is perfectly competitive:
a. the market demand for the resource is perfectly elastic.
b. the market demand for the resource is perfectly inelastic.
c. the suppliers can affect the input price by increasing or reducing their supply.
d. the input price to each firm is constant.
e. the supply of the resource is perfectly inelastic.
d
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The concept of opportunity cost in a fully employed economy with technology and resources held constant tells us that
A. expansion of output in one industry means expansion cannot occur in another industry. B. expansion of output in one industry means output in another industry must contract. C. output cannot be increased in any industry. D. output of all industries must contract until more resources are found.
________ is defined as a sustained ________ in the price level
A) Inflation; fall B) Deflation; fall C) Deflation; rise D) Answers A and C above are both true.
Identify the correct statement
a. District banks of the Fed hold reserves in the form of deposits at the Fed. b. Commercial banks in each district make loans to the Fed. c. The Fed sells U.S. government securities for the U.S. Treasury. d. The district banks of the Fed print money and supply currency to the Fed. e. The Fed holds the reserves of the commercial banks but it does not issues checks.
A market is a set of arrangements where:
A) buyers and sellers can get together and buy and sell. B) buyers compete with sellers. C) sellers compete with buyers. D) A and C are true, but B is not true