Which of the following statements is NOT true about Say's law?
A) Markets would be regularly hit by severe shortages and surpluses.
B) People produce more goods than they want for their own use only if they seek to trade them for other goods.
C) Desired expenditures will equal actual expenditures.
D) Surpluses will be eliminated by falling prices and shortages will be eliminated by increasing prices.
A
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If faced with the same cost conditions as a perfectly competitive firm, a monopoly will
a. charge a lower price than the perfectly competitive firm. b. charge a higher price than the perfectly competitive firm. c. charge the same price as the perfectly competitive firm. d. refuse to operate in the short run unless an economic profit can be made.
The Acme Oil Company is a vertically integrated firm. It explores for and extracts crude oil. It also refines the crude oil into gasoline and other products, and sells these products to consumers
The internal price that Acme Oil uses when the crude oil that it extracts is "sold" to one of its refineries is called: A) the shadow price. B) the transfer price. C) the market price. D) the non-market price. E) none of the above
Trace the cause-effect chain that results from an expansionary monetary policy.
What will be an ideal response?
Which of the following is an example of price discrimination?
a. airlines charging lower prices for those who book in advance b. $6 foot-long subs at Subway c. the McPick 2 menu at McDonald's d. Little Roman's pizza menu with the following prices: cheese pizza = $8, supreme = $11