Which of the following statements characterizes perfect competition?
a. Producers enjoy complete freedom of entry and exit from the industry.
b. Producers sell differentiated products.
c. Producers are price makers.
d. Consumers are price makers.
e. The firm is not free to choose the quantity that it wishes to produce.
a
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Labor unions in the United States
A. tend to be more outspoken politically than those in Europe. B. have experienced steady declines in membership since the 1950s. C. tend to be more powerful in deregulated industries (e.g., airlines) than in regulated industries. D. universally support socialist principles.
Which of the following indicates an input is being overused relative to the optimal level?
a. MRP = P of input. b. MRP > P of input. c. MRP < P of input. d. MPP > P of output.
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to real GDP and the nominal value of the domestic currency in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. Real GDP rises and nominal value of the domestic currency falls. b. Real GDP falls and nominal value of the domestic currency remains the same. c. Real GDP and nominal value of the domestic currency remain the same. d. Real GDP rises and nominal value of the domestic currency remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Economists and accountants use the same definition of profit.
Answer the following statement true (T) or false (F)