In regards to its shape, a perfectly competitive firm's demand curve is _____.
Fill in the blank(s) with the appropriate word(s).
Answer: Horizontal
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A key assumption made when a supply schedule is constructed is that
A. the only factors that matter in determining supply are price and quantity. B. firms only want to sell a certain amount of a product. C. supply is too important to be left to the marketplace. D. only price and quantity vary, all other determinants of supply are held constant. E. demand has a positive slope.
Public debt promotes overconsumption if
a. foreigners hold the debt b. people fail to regard bonds as their personal assets c. people view the government's liabilities as their own d. the Federal Reserve buys bonds e. people regard their bond holdings as part of their savings
We currently run a negative trade balance in ______ and a ______ trade balance in services.
Fill in the blank(s) with the appropriate word(s).
When a market is in equilibrium:
a. there is a downward pressure on the price. b. quantity demanded is equal to quantity supplied. c. there is excess supply in the market. d. quantity demanded exceeds quantity supplied.