Although price searchers can set their prices, the prices they can set are still affected by market conditions.
a. True
b. False
2. Suppose firms in a competitive price-searcher market with low barriers to entry are earning an economic profit.
Firms will (enter/exit) this market until economic profits are (zero/postive/ negative)
Ans:
a. True
2. enter, zero
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When a tax is based on the difference between the market value of the taxpayer's assets and liabilities, it is called
A. a difference tax. B. a wedge tax. C. a personal net worth tax. D. an implied liability tax.
Why might an economist argue that it could be damaging to the economic growth of a nation if it focused mostly on the production of consumer goods?
What will be an ideal response?
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.
A. exactly 30 B. exactly 60 C. fewer than 30 D. more than 30
When total product is rising:
A) marginal product is positive. B) marginal product is zero. C) marginal product is negative. D) average product is decreasing.