If the graph shown is displaying a competitive market and the market is currently offering a wage more than P*:
A. there would be a shortage of workers who want to work at that wage.
B. firms would have a hard time finding employees.
C. there would be unemployment in the market.
D. other firms would increase demand and shift the equilibrium.
Answer: C
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The first antitrust legislation was passed in the United States during the late 1970s in response to the massive OPEC oil-price shocks and the Penn-Central Railroad cartel. Prior to this time, government authorities were forced to use nuisance laws to restrict anti-competitive business activity
Indicate whether the statement is true or false
Under fractional banking, when a bank lends to a customer
A. the money supply increases. B. bank profitability is decreased. C. the bank is protected from a run. D. bank credit decreases.
Which statement is true about the perfect competitor in the short run?
A. He may make a profit, but he won't take a loss. B. He may take a loss, but he won't make a profit. C. He will break-even. D. None of the statements are true.
Constant dollar Gross Domestic Product (GDP)
A. is equal to real GDP multiplied by the overall price level. B. is the same as nominal Gross Domestic Product (GDP). C. is nominal Gross Domestic Product (GDP) divided by the price index. D. all of these.