Relative prices describe the terms at which individual goods are exchanged for one another
a. True
b. False
Indicate whether the statement is true or false
True
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The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price
A) the amount people are willing to buy B) the amount people are able to buy C) the amount people are willing and able to offer D) the amount people are willing and able to buy E) the amount people are willing to buy because it is the amount sellers are willing to sell
Inflation is problematic if
a. it is less than the percentage increase in nominal income. b. it is less than the nominal return on saving. c. it equals the growth rate of real GDP in the long run. d. it distorts relative prices, causing a misallocation of resources.
Exhibit 10-1 A monopolistic competitive firm
If all firms in the industry are the same as the monopolistic competitive firm shown in this Exhibit 10-1, firms in the long run will:
A. leave the industry. B. earn positive economic profits. C. experience less competition because firms will exit the industry. D. experience competition from new firms that enter the industry.
A merger between firms that compete in the same market is called a:
A. horizontal merger. B. vertical merger. C. conglomerate merger. D. monopoly.