The market supply in a perfectly competitive market is:
A. the sum of the quantities that each individual producer is willing to supply.
B. the total quantity of a good that the biggest market shareholder supplies at a given price.
C. fixed.
D. derived from the MC curves from each firm after MC hits ATC.
Answer: A
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The difference between the economic and political functions of government is that
A) the economic function is concerned with the Federal Taxation system while the political function is not. B) the economic function is concerned with correcting for market failures while the political function is not. C) the economic function is concerned with the reallocation of income while the political function is not. D) the economic function encourages merit goods while the political function discourages demerit goods.
In a competitive market characterized by increasing costs, the
A. long-run industry supply curve gives the long-run marginal cost of production at various levels of industry output. B. long-run industry supply curve is upward sloping. C. long-run industry supply curve gives the minimum long-run average cost of production at various levels of industry output. D. both a and b E. all of the above
Which of the following is an example of an inferior good?
a. A 15 percent increase in income results in a 17 percent decrease in demand for subcompact cars. b. A 10 percent increase in income results in a 14 percent increase in demand for sports cars. c. A 12 percent increase in income results in a 12 percent increase in demand for sedan cars. d. A 20 percent decrease in income results in a 30 percent decrease in demand for luxury cars.
An example of moral hazard is
a. workers shirking when the boss is not looking b. health care insured dieting and exercising c. drivers of safer cars turning their phones off before driving d. borrowers investing their loan proceeds exactly as the bank requires