A price taker is a buyer or seller who:
A. has the goal of maximizing market share, not profits.
B. has complete control over setting the market price.
C. can influence the market price.
D. has no control over setting the market price.
Answer: D
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An increase in real GDP can shift
A) money demand to the left and increase the equilibrium interest rate. B) money demand to the right and increase the equilibrium interest rate. C) money demand to the right and decrease the equilibrium interest rate. D) money demand to the left and decrease the equilibrium interest rate.
If the growth rate of resources is 2 percent and per capita real output is growing at 4 percent, then total factor productivity has fallen by 4 percent
a. True b. False Indicate whether the statement is true or false
Alexis and Tara both mine salt. Alexis mines 300 pounds in 20 hours. Tara mines 400 pounds in 40 hours. Which of the following is correct?
a. Alexis's productivity is greater than Tara's. This difference could be explained by Alexis having more physical capital than Tara. b. Alexis's productivity is greater than Tara's. This difference cannot be explained by a difference in the physical capital each has. c. Tara's productivity is greater than Alexis's. This difference could be explained by Tara having more physical capital than Alexis. d. Tara's productivity is greater than Alexis's. This difference cannot be explained by a difference in the physical capital each has.
Each firm in a perfectly competitive industry is
A) producing a unique product. B) relatively large. C) a price taker. D) a price maker.