If GDP falls:
A) income and production must both fall.
B) income and production must both rise.
C) income must rise, but production may rise or fall.
D) none of the above.
A
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Which of the following would be inconsistent with the notion of a competitive market process and the notion of perfect competition?
A) Price searching behavior B) Predatory pricing C) Advertising D) Licenses and other legal restrictions on entry E) Hostile takeovers
Air pollution best illustrates
A. An external cost. B. An inequity. C. Government failure. D. Market power.
Relative to a market with perfect information, in a market with imperfect information:
A. some goods will be sold in small quantities or not at all. B. more than the equilibrium quantity of goods will be sold. C. the equilibrium quantity will be sold, but at a price higher than the equilibrium price. D. the equilibrium quantity will be sold for the equilibrium price.
Average Variable Cost is
A. the per unit variable cost of production. B. the per unit cost of production. C. the addition to cost associated with one additional unit of output. D. the per unit fixed cost of production.