In a perfectly competitive market, many firms sell an identical product
Indicate whether the statement is true or false
TRUE
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Give a specific example that shows clearly how the System of National Accounts endorsed by the United Nations fails to properly capture activity that harms the environment. Now, suggest a way to quantitatively correct the flaw in the particular case that you describe in part (a).
What will be an ideal response?
Use the following graphs to answer the next question.
In the diagrams, AD1 and AS1 are the "before" curves. Assuming Q1 is full-employment output, a recession is depicted by ________.
A. panel (A) only B. panel (B) only C. panel (C) only D. panels (A) and (B)
One reason for the controversy surrounding the decision by the European Central Bank to buy Greek bonds was that:
A) it may increase moral hazard by encouraging other European governments to issue more debt than private investors were willing to buy B) it may increase adverse selection by encouraging other European governments to issue more debt than private investors were willing to buy C) it may result in higher risk premiums as private investors anticipate a default by Greece D) it may worsen the Greek recession by increasing Greek interest rates
Suppose that the long-run world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively
The current long-run equilibrium price is $30 per barrel and the equilibrium quantity is 16.88 billion barrels per year. a. Derive the (linear) long-run demand and supply equations. b. Suppose the long-run supply curve you derived above consists of competitive supply plus the quantity of OPEC supply. If the long-run competitive supply (not including OPEC's production) is: QS = 7.78 + 0.29p, what must be OPEC?s level of production in this long-run equilibrium to maintain the price of $30?