Macroeconomics involves the study of the decision-making of individual firms or individuals.
Answer the following statement true (T) or false (F)
False
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Which of the following is a reason why individual firms under perfect competition would not find it gainful to advertise their product?
A. The quantity of the product demanded is very large. B. Firms produce a homogeneous product. C. Firms do not make long-run profits. D. The market demand curve cannot be increased.
Both the classical and the HO model predict that the pattern of trade is determined largely by international differences in factor endowments
Indicate whether the statement is true or false
When the average buyer of an insurance policy is likely to have higher risk than others in his class, this is known as
A. adverse selection. B. moral hazard. C. asymmetric information. D. an HMO.
If the price of chicken rises and the price of beef does not rise, consumers will respond by:
A. increasing purchases of beef and chicken. B. reducing purchases of beef and chicken. C. substituting chicken for beef. D. substituting beef for chicken.