Which of the following is not true of a perfectly competitive market?
a. Firms experience constant returns to scale.
b. Firms face significant barriers to entry.
c. Economic profit is zero.
d. Each firm chooses the quantity it wants to sell.
e. Each firm knows the prices of outputs and inputs.
B
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Capital payments usually represent ________ of income payments
A) two-third B) three-fourths C) one-fourth D) one-third
The deadweight loss from monopoly exists because:
A. resource owners hired by the monopolist gain at the expense of consumers. B. the marginal benefit of the monopolist's product to society exceeds the monopolist's marginal cost. C. the monopolist produces at an output level at which no one can be made better off without making someone worse off. D. there are no net gains to society at the output level produced by a monopolist.
The greater the marginal propensity to import, the
A. smaller is the level of consumption. B. greater is the net export. C. greater the level of investment. D. smaller the spending multiplier.
Income is determined in the money market.
a. true b. false