In the perfectly competitive market, individual firms exert no effect on the market price. Therefore, the firm's marginal revenue is:
A. zero.
B. an upward-sloping curve.
C. a downward-sloping curve.
D. the same as the firm's demand curve.
Answer: D
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The government of Genovia introduced an unemployment insurance that ensures full payment of former wages to unemployed workers
A study conducted a few months after the introduction of this policy showed that several unemployed workers in Genovia were not actively searching for work. Such behavior is an example of ________. A) adverse selection B) moral hazard C) the prisoners' dilemma D) the free-rider problem
The markets for movie theater tickets and videocassette rentals are highly interdependent. Suppose that a tax is imposed on movie theater tickets
The type of analysis that examines the effects of this tax on the markets for movie theater tickets and videocassettes simultaneously is called A) macroeconomics. B) general equilibrium analysis. C) partial equilibrium analysis. D) full market analysis. E) psychoanalysis.
Suppose that the income elasticity of demand for college education is 1.3 . This indicates that
a. college education is a necessity b. college education is an inferior good c. the demand curve for college education slopes downward d. college education is a normal good e. the demand curve for college education is horizontal
Measured as a share of GDP, federal spending during 2001-2010
a. increased more rapidly than during the 1990s. b. increased less rapidly than during the 1990s. c. declined after increasing rapidly during the 1990s. d. was virtually unchanged during the decade.