Which of the following is false of perfectly competitive firms?
a. As new firms enter an industry where sellers are earning economic profits, the result will include a reduction in the equilibrium price.
b. In a constant-cost industry, the industry does not use inputs in sufficient quantities to affect input prices
c. In a constant-cost competitive industry, the long-run effect of an increase in demand is an increase in industry output but no change in the industry price.
d. All are true.
d
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A rightward shift in the demand curve is called a(an):
a. decrease in output. b. decrease in demand. c. increase in demand. d. increase in income.
What is the expected payoff of an investment that yields $5,000 with a probability of 0.15 and $500 with a probability of 0.85?
A. $325 B. $5,500 C. $1,175 D. $2,750
When foreigners export goods to the United States
a. they reduce the ability of the U.S. to export products abroad. b. they acquire the dollars that are necessary to purchase goods, services, and assets from Americans. c. they reduce the living standards of Americans. d. they cause the dollar to depreciate.
A tax whose burden, expressed as a percentage of income, increases as income increases is
A. a progressive tax. B. an ability-to-pay tax. C. a regressive tax. D. a proportional tax.