In a perfectly competitive market, firms set:
A. prices and quantities.
B. quantities but not prices.
C. neither prices nor quantities.
D. prices but not quantities.
Answer: B
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An increase in supply will cause a shortage at the original market price
a. True b. False Indicate whether the statement is true or false
The future value of $1 saved today is $1/(1 + r)
a. True b. False Indicate whether the statement is true or false
The law of demand states that:
A. as the price of a good increases, more units are demanded. B. there is a direct relationship between the price of a good and the quantity of the good produced. C. there is a negative relationship between the price of a good and the quantity of the good demanded. D. there is an increase in the need for a good as the price of the good increases.
Adjusting labor force participation rates for the age of the population suggests that
A. the raw number overstates the increase in the rate among women. B. the raw number understates the increase in the rate among women. C. the raw number correctly states the decrease in the rate among women. D. the labor force participation rate among women is higher than that of men.