Which is a reason why there is no advertising by individual firms under pure competition?
A. Firms produce a homogeneous product.
B. Firms do not make long-run profits.
C. The quantity of the product demanded is very large.
D. The market demand curve cannot be increased.
Answer: A
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For automobile demand in the U.S., the income response tends to be larger in the:
A) short run. B) long run. C) The income response is the same in the long run and the short run. D) We do not have enough information to answer this question.
Policies that redistribute income
a. reduce the rewards of high-income earners. b. raise the rewards of low-income earners. c. reduce the incentive to earn high income. d. All of the above are correct.
If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Aggregate demand rises, but aggregate supply does not change. b. Aggregate demand falls, and aggregate supply rises. c. Aggregate demand and aggregate supply rise. d. Aggregate demand and aggregate supply fall. e. None of the above.
Which country has had a higher growth rate than the U.S. over about the last 120 years?
a. India b. Mexico c. United Kingdom d. Pakistan