_____ forces firms in a perfectly competitive market to sell their products at the prevailing market price
a. Pronounced barriers to entry
b. The ability to raise prices to levels higher than the marginal cost of production
c. A high degree of similarity with competitors' products
d. Supernormal profits in the long run
c
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If a decision is made and it is the best choice for society, the decision is said to be
A) a valid economic choice. B) made in self-interest. C) made in social interest. D) consist with scarcity. E) a want-maximizing choice.
Compared to the distribution of money income, the distribution of wealth is
A) about the same. B) much more equal. C) much less equal. D) a little more equal.
The U.N.'s Millennium Aid Goal is for nations to increase their foreign aid levels to 0.7 percent of donor country GDP.
Answer the following statement true (T) or false (F)
Assume the exchange rate is allowed to fluctuate freely. Using the IS-LM-IP model, graphically illustrate and explain what effect a reduction in foreign output (Y*) will have on the domestic economy. In your graphs, clearly label all curves and equilibria
What will be an ideal response?