When firms are in perfect competition, the result is that firms charge a price that is always equal to its
A. AFC.
B. minimum ATC.
C. minimum AVC.
D. MC.
Answer: D
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The primary value of real GDP is its ability to measure year to year changes in
a. real output. b. income inequality. c. real social welfare. d. the general level of prices.
In a competitive market,
a. no single buyer or seller can influence the price of the product. b. there are only a small number of sellers. c. the goods offered by the different sellers are unique. d. accounting profit is driven to zero as firms freely enter and exit the market.
The main reason that policy makers are reluctant to force the economy to a zero percent inflation rate is that
A. Unacceptable levels of unemployment might result. B. Businesses would not be able to raise prices. C. Real incomes would fall. D. Businesses would postpone production decisions. E. The PPI formula would need to be recalculated.
The corporation with the largest dollar loss in 2008 was
A. AIG. B. Fannie Mae. C. General Motors. D. Merrill Lynch.