What conditions are necessary for economic competition to exist?
Please provide the best answer for the statement.
Competition requires the presence of large numbers of buyers and sellers. The number must be large enough so that no single buyer or seller can affect the price of the product by their individual actions regarding demand or supply. In addition, competition assumes that it is simple for producers to enter or leave a particular industry so that the economy can adjust appropriately to changes in consumer demand, technology, or resource supplies.
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________ economists believe that the economy is self-regulating and will be at full employment as long as monetary policy is not erratic
A) Keynesian B) Monetarist C) Classical D) All
The Keynesian cause-and-effect sequence predicts that a decrease in the money supply will cause interest rates to:
A. fall, boosting investment and shifting the AD curve rightward, leading to an increase in real GDP. B. fall, boosting investment and shifting the AD curve rightward, leading to a decrease in real GDP. C. rise, cutting investment and shifting the AD curve leftward, leading to a decrease in real GDP. D. rise, boosting investment and shifting the AD curve rightward, leading to an increase in real GDP.
If most immigrants have relatively low skills, how would the wage for low-skilled labor be affected by a reduction in immigration?
a. The equilibrium wage for low-skill labor would rise. b. The equilibrium wage for low-skill labor would fall. c. The minimum wage for low-skill labor would decrease. d. The earnings gap between low- and high-skill labor would widen.
In a commercial bank's T-account, reserves and outstanding loans are recorded as:
A. debts. B. profits. C. assets. D. liabilities.