Why are consumers in a competitive market considered to be price takers?
What will be an ideal response?
A consumer in a competitive market can buy any quantity of a good without affecting the market price, and is therefore considered to be a price taker. This is because a competitive market is characterized by many buyers and sellers and each consumer only buys a small fraction of the total quantity supplied of a good.
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If government expenditure increases by $200 billion and taxes simultaneously increase by $200 billion, then aggregate demand
A) remains the same. B) decreases no matter what happens to aggregate supply. C) increases no matter what happens to aggregate supply. D) increases only if aggregate supply increases. E) increases only if aggregate supply decreases.
Which groups were opposed to the Bank of the United States?
A) northeastern industrial interests B) northeastern financial interests C) southern and western agrarian and small-business interests D) exporters
If the Gini coefficient increases to one,
a. the area between the Lorenz curves and the two sides of the right angle triangle, that is, the area below the Lorenz curve, increases b. poverty levels are likely to decline c. the area between the Lorenz curve and the diagonal decreases d. income inequality increases e. income equality increases
A market economy provides solutions to almost all social ills such as poverty and environmental damage.
Answer the following statement true (T) or false (F)