The military is NOT a perfectly competitive market because
A) there is only one buyer, i.e., the government, for military goods/services.
B) there is imperfect information, i.e., intelligence branches.
C) there are heterogeneous goods/services because each military branch provides different goods/services.
D) All of the above.
D
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Between 2000 and 2015, the price of a PC fell and the quantity of PCs sold increased. Which of the explanations below is consistent with these facts?
A) The demand for PCs increased by more then the supply of PCs increased. B) The supply of PCs increased by more than the demand for PCs increased. C) The demand for PCs decreased by more than the supply of PCs increased. D) Both the supply of PCs and the demand for PCs decreased.
The fallacy of composition is the erroneous view that: a. an increase in the supply of money will cause a general increase in the level of prices
b. a small change in an economic variable will have an unrecognizable but significant effect on the economy. c. when two events are associated, the one observed first must have caused the second. d. if something is true for an individual, then it must also be true for a group.
An expansionary monetary policy: a. decreases inflation in the long run
b. increases unemployment in the long run. c. increases potential GDP in the long run. d. increases inflation in the long run.
If either the production or consumption of a good generates an external cost, then the:
A. social demand curve will lie to the right of the private demand curve. B. social demand for the good will equal zero. C. social marginal cost curve will lie to the left of the private marginal cost curve. D. social marginal cost curve will lie to the right of the private marginal cost curve.