Which of the following is the best example of an event that would cause a demand shock?
A. Unexpected changes in financial asset prices.
B. Unexpected changes in technology that alter production costs.
C. Productivity changes.
D. Natural disasters that destroy oil refineries.
Answer: A
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Refer to Figure 4-18. How much of the tax is paid by producers?
A) $45 B) $8 C) $3 D) $2
Under long-run equilibrium in perfect competition, each firm operates at the minimum point of its average-variable-cost curve
a. True b. False Indicate whether the statement is true or false
Which of the following will cause an increase in producer surplus?
a. the imposition of a binding price ceiling in the market b. buyers expect the price of the good to be lower next month c. the price of a substitute increases d. income increases and buyers consider the good to be inferior
Which of the following is not a condition for perfect competition?
A. Firms have perfect information. B. Firms take prices as given. C. Firms are protected by barriers to entry. D. Firms sell a standardized product.