If perfect competition existed everywhere, along with frictionless exchange, perfect information, and constant returns to scale,
a. consumers would carry out transactions directly with resource suppliers
b. firms would not have the information necessary to calculate marginal productivities of resources
c. entrepreneurs would be needed to collect information
d. consumers would produce output and then engage in barter
e. the economy would be organized into one large firm
A
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When leisure is a normal good, the income effect from a decrease in wages is evident in
a. a desire to consume more leisure. b. a desire to consume less leisure. c. an upward-sloping labor-supply curve. d. a shift in labor demand.
The demand for most agricultural products is:
A. elastic with respect to price but inelastic with respect to income. B. inelastic with respect to price but elastic with respect to income. C. elastic with respect to both price and income. D. inelastic with respect to both price and income.
Sports announcers often refer to a batter in a hitting slump as "being due." If they are correct, then it must be the case that
A) a batter's hits are randomly distributed. B) a batter's at-bats are related to each other. C) a batter's at-bats are independent of each other. D) baseball players are acting irrationally.
A patent
A) always gives rise to a monopoly. B) may not provide a barrier to entry. C) allows the patent owner to capture all of the consumer surplus. D) increases total welfare.