Intense market competition is ________ for producers, since it_______
a. Bad; erode consumer surplus
b. Bad, erode producer profits
c. Good, increase the price level in the market
d. Good; decrease the price level in the market
b
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Early industrialization was characterized by labor-saving technology, and this caused U.S. wages to be lower in the manufacturing industry than would otherwise have been the case
Indicate whether the statement is true or false
The absolute price elasticity of demand for a product that has many good substitutes is probably
A) less than 1. B) greater than 1. C) equal to 1. D) infinity.
If a small country imposes a tariff on imported motorcycles, the world price of motorcycles will ________ and the domestic price of motorcycles will
A. remain constant; fall. B. fall; rise. C. rise; fall. D. remain constant; rise.
If the Fed increases its discount loans to banks, makes an open market purchase of Treasury securities, or increases its foreign exchange reserves, the impact on its balance sheet will be the same. In each case the Fed's assets and liabilities will both increase; the level of reserves increases and the monetary base expands. All three of these actions have the same effect because they all result in an increase in the reserves available to the banking system, which therefore means an increase in the base.
Which one is correct? a. True b. False