Empirical studies suggest that when a large number of firms are present in a market, prices are usually ________ and profits are usually ________ than when there are only a few firms in a market.
A. lower; higher
B. lower; lower
C. higher; higher
D. higher; lower
Answer: B
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The amount of national income in an economy equals the money supply in an economy
Indicate whether the statement is true or false
In a two-period model with production, a shock that shifts the output demand curve to the right, and does not shift the output supply curve
A) causes an increase in the current account surplus and an increase in real output. B) causes no change in the current account surplus and an increase in real output. C) causes a decrease in the current account surplus and no change in real output. D) causes a decrease in the current account surplus and an increase in real output.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.
Which market structure is characterized by a few interdependent firms?
A.) Monopolistic competition. B.) Oligopoly. C.) Monopoly. D.) Perfect competition.