When an individual firm in a competitive market increases its production, it is likely that the market price will fall
a. True
b. False
Indicate whether the statement is true or false
False
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Compare and contrast production efficiency and allocative efficiency
What will be an ideal response?
A budget surplus exists when
a. Tax receipts < government expenditures + transfers. b. Tax receipts > government expenditures + transfers. c. Government expenditures ? transfers > tax receipts. d. Government expenditures > transfers + tax receipts.
Market economies are often criticized for how they answer the basic question, "For whom are goods produced?" This criticism usually comes from people who believe that the distribution of income is not "fair." Is there some way to separate production from distribution so that we can leave production just as it is but make the distribution of income "fairer"?
An unanticipated decline in the real interest rate in the loanable funds market will cause the
a. aggregate demand curve to shift to the right. b. aggregate demand curve to shift to the left. c. long-run aggregate supply curve to shift to the left. d. natural rate of unemployment to fall.