Generally, in economics we study how people
a. react to changes in government policy.
b. make choices when resources are scarce.
c. react to rising prices.
d. get increases in income.
b. make choices when resources are scarce.
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Using a graph, show a short-run equilibrium for the industry and the firm. Explain the graph
What will be an ideal response?
A perfectly competitive firm will not operate where MC = MR but at MC = AC.
Answer the following statement true (T) or false (F)
Which of the following is a characteristic of the oligopoly model?
a. The oligopoly market consists of only a small number of sellers. b. The sellers in an oligopoly market are price takers. c. The output decisions taken by sellers are uniform and steady. d. There are barriers to the exit of firms in an oligopoly market.
When people expect higher inflation, usually nominal interest rates will:
A. rise. B. fall. C. remain unchanged. D. move erratically.