In Figure 5.1, what output would a perfect competitor produce? 
A. Q1
B. Q2
C. Q3
D. Q4
Answer: B
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The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to rise. b. M2 money supply to rise. c. M2 money multiplier to remain the same. d. Monetary base to fall.
Many beaches have a lifeguard on duty during the summer but not during the winter. The most likely explanation for this is that:
a. the marginal cost of having a lifeguard on duty varies over the year and tends to be lower during the summer. b. the marginal benefit of having a lifeguard on duty is higher during the summer when more people are at the beach. c. people understand that if you go swimming at the beach during the winter, you do so at your own risk. d. there is no danger of drowning at the beach during the winter.
Government policies such as price controls, rent controls, and quantity restrictions have the effect of
A) promoting the attainment of an unhindered market equilibrium. B) allowing quantity demanded to adjust to equality with aggregate supply. C) creating excess quantities demanded or excess quantities supplied. D) pushing prices to market clearing levels more rapidly than private market forces.
Standardized goods and services refers to those that:
A. are interchangeable. B. have close substitutes. C. are unique. D. are regulated by the government.