When supply is fixed or the product is unique, then price is
A. supply determined.
B. government determined.
C. demand determined.
D. indeterminate.
Answer: C
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Normal profit is a(n) ________ cost because ________
A) implicit; it represents the cost of not running another firm B) explicit; a firm must pay income taxes on its profit C) implicit; it represents the cost of economic depreciation D) accounting; wages are considered an explicit cost E) depreciation; the equipment the firm owns wears out over time
Mary and Mike are twins who attended grammar school through college together. Both twins got jobs in the same department of an accounting firm. They both work equally hard and have received similar performance reviews. Mary earns $62,000 a year, and Mike earns $80,000 a year. Select the best explanation for this wage difference
a. Mary has less human capital than Mike. b. Mary has more human capital than Mike. c. Mike has been discriminated against because he is male. d. Mary has been discriminated against because she is female.
One consumption bundle is revealed preferred to a second bundle if:
A. a consumer voluntarily chooses it over the second bundle. B. surveys reveal that consumers are more likely to choose it than the second bundle. C. it is cheaper than the second bundle. D. it lies on a higher indifference curve than the second bundle.
Supply-siders argue that:
A. reductions in government spending cut infrastructure investment which hurts private sector investment. B. increases in government spending increase infrastructure investment which helps private sector investment. C. increases in government spending causes private sector investment to fall because the government pushes up interest rates. D. reductions in government spending cause private sector investment to fall because the government pushes up interest rates by borrowing.