Considering the relevant market structures, which is an INCORRECT statement?
A. In any market situation, the number of firms is not very important.
B. In monopolistic competition, there is a large number of firms.
C. In a perfectly competitive situation, there is an extremely large number of firms.
D. In pure monopoly, there is only one firm.
Answer: A
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To calculate gross domestic product, you use the sum of the market values of all final goods and services produced in a given year. This means you
A) count the total number of final goods and services produced in the marketplace in that particular year and then add the numbers together. B) count the total number of final goods and services produced in the marketplace from every year including that given year and then add the numbers together. C) value the final goods and services at their market prices for that particular year, multiply them by the quantity produced that year, and then add the numbers together. D) value the final goods and services at their market prices for that particular year, multiply them by the quantity produced from every year including that given year, and then add the numbers together.
Allocative efficiency occurs when
a. output is produced at minimum average cost b. the marginal benefit, that consumers attach to the final unit purchased, just equals the opportunity cost of the resources employed to produce that unit. c. new firms enter a perfectly competitive market d. the marginal benefit consumers attach to products purchased is maximized e. goods and services are sold in an English style auction market
Which of the following economies has the lowest ratio of Social Security benefits to GDP in 2006?
a. United Kingdom b. Netherlands c. Canada d. France e. United States
Which of the following is not generally considered to be a major cure for insolvency?
a. Equity infusions. b. Expansionary monetary policies. c. Financial restructuring. d. New management strategies. e. Asset liquidations.