In short-run equilibrium in a perfectly competitive market,
a. the price varies along the market supply curve
b. each consumer can buy whatever quantity he wishes to buy at the market price
c. the price varies along the market demand curve
d. the market demand curve is horizontal
e. the market demand curve is vertical
B
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If the institutions in an economy change from being extractive to inclusive, the return-to-entrepreneurship schedule in the economy will:
A) become vertical. B) shift leftward. C) become horizontal. D) shift rightward.
Development economics must have a scope wider than traditional economics because
a. values and attitudes play little role in the pace of development. b. people in developing societies do less utility-maximizing. c. transformation of social institutions is necessary for development. d. all of the above.
If Niki is willing to pay up to $5 for an ice-cream bar but she actually pays $2 for it. The consumer surplus of the ice-cream bar for Niki
A) is $2. B) is $3. C) is $7. D) cannot be determined without information about the market structure.
If the dollar-pound exchange rate is $2.00 per pound, then a shirt priced at 25 pounds will cost an American
a. $25 b. $50 c. $26 d. $27 e. an amount that cannot be calculated without additional information.