Contestable markets can be competitive with only a few firms
Indicate whether the statement is true or false
T Entry is so easy in a contestable market that even with just one firm selling, if it sets its price too high entrants will undercut it and steal the market, or at least part of it.
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Use the following table for Country X to answer the next question. Column 1 of the table is the world price of a product, Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantity supplied domestically (Qsd). Assume the small-country model is applicable.PriceQddQsd$5.002004004.002503503.003003002.003502501.00400200At what world price will Country X import 100 units of the product?
A. $4.00 B. $2.00 C. $1.00 D. $3.00
Scarcity is a problem:
a. because human wants are unlimited while resources are limited. b. only in industrialized economies. c. of the poor, but not the rich. d. measured by the amount of goods available.
The nominal interest rate minus the inflation rate equals the real interest rate
Indicate whether the statement is true or false
If the real interest rate in the economy is i and the expected rate of return on additional investment is r, then other things equal:
A. more investment will be forthcoming when i exceeds r. B. less investment will be forthcoming when r rises. C. r will fall as more investment is undertaken. D. r will exceed i at all possible levels of investment.