For the perfectly competitive firm:
A. price always equals average cost.
B. price always equals marginal cost.
C. price always equals marginal revenue.
D. price always equals average variable cost.
Answer: C
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In barometric price leadership, one firm announces a change in price
a. and the other firms follow b. but the other firms refuse to follow c. that it hopes will be accepted by others d. which is merely a test of the market e. none of the above.
Medicare subsides will cause people to
A) consume less medical services than in the absence of the subsidies. B) consume more medical services than in the absence of the subsidies. C) consume the same amount medical services as they would if there were no subsidies. D) be sicker because of inferior care.
For the recessions in the United States since the 1950s
A) inflation has been nonexistent. B) the inflation rate rises on average by about 2.5 percentage points 12 months after a recession begins. C) the inflation rate falls on average by about 2.5 percentage points 12 months after a recession begins. D) deflation occurs.
U.S. gross domestic product is converted to U.S. gross national product by
a. adding the value of output produced by U.S.-owned resources in foreign countries. b. subtracting the value of output produced by U.S.-owned resources in foreign countries. c. subtracting the value of output produced in the United States by foreign-owned resources. d. both adding the value of output produced by U.S.-owned resources in foreign countries AND subtracting the value of output produced in the United States by foreign-owned resources.