In perfect competition, if firms enter the market in the long run
A) total supply will increase causing market price to increase.
B) total supply will decrease causing market price to decrease.
C) total supply will decrease causing market price to increase.
D) total supply will increase causing market price to decrease.
D
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Answer the next question on the basis of the following table in which columns (1) and (2) indicate the transactions demand (Dt) for money and columns (1) and (3) show the asset demand (Da) for money.(1)Interest Rate(2)Dt(3)Da12%$100$010100208100406100604100802100100If the money supply is $160, the equilibrium interest rate will be
A. 8%. B. 4%. C. 10%. D. 6%.
Annie had a job as a human resource manager of a restaurant chain that went out of business due to a downturn in the economy. This is an example of
A) cyclical unemployment. B) structural unemployment. C) seasonal unemployment. D) technological unemployment.
The vertical portion of the aggregate supply curve shows that at full employment an increase in the price level will:
a. not alter the economy's full-employment real GDP. b. increase the economy's full-employment real GDP. c. reduce the quantity of goods and services purchasers will demand. d. improve the overall efficiency of resource use.
For consumers, oranges and bananas are substitutes. Hence if the price of an orange rises, the demand for Question 11 options:
A. bananas increases. B. oranges increases. C. bananas decreases. D. oranges decreases.