Which of the following is true?
a. Competitive forces are stronger in markets with high entry barriers than in those where entry barriers are low.
b. Quality competition is an important element of the competitive process.
c. If the production of a good is highly profitable, the development of substitute products will be discouraged.
d. High barriers to entry are only the result of natural factors not artificial factors like government regulations.
B
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When all other influences on work plans remain the same, the
A) lower the real wage rate, the smaller the quantity of labor supplied. B) higher the real wage rate, the greater the quantity of labor demanded. C) lower the real wage rate, the greater the quantity of labor supplied. D) lower the real wage rate, the smaller the quantity of labor demanded. E) lower the real wage rate, the larger the labor force participation.
The market for used cars is shown in the above figure. Buyers cannot tell whether any given car is a lemon. Ten percent (10%) of all cars are lemons. Which of the following statements is true?
A) All of the cars will be sold. B) No cars will be sold. C) Only lemons will be sold. D) Only good cars will be sold.
If slope = -2 for a line on a graph with x on the horizontal axis and y on the vertical axis, then if
a. x increases by 4, y increases by 8 b. x increases by 4, y increases by 2 c. y increases by 4, x increases by 8 d. x = 4, y = 8 e. x increases by 4, y decreases by 8
In the long run, an increase in government spending, other things equal, generates
A) a higher real GDP in the long run. B) a lower real GDP in the short run. C) a higher price level. D) both a higher real GDP and a lower price level.