Picture a competitive market with the usual upward sloping supply curve and downward sloping demand curve. If the current price is creating a shortage, then market forces will cause the price to adjust and
A. quantity supplied will increase.
B. quantity demanded will increase.
C. quantity supplied will decrease.
D. demand will decrease.
Answer: A
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In the Cournot model
A) market price is unaffected by the actions of any individual firm. B) firms do not have to worry about the strategies of the other firms. C) firms' profits are independent. D) firms' profits are interdependent.
Which is the fastest growing component of the federal government budget?
A) spending on the military and the war on terrorism B) spending to improve the nation's schools C) spending to improve and expand the nation's infrastructure D) spending on entitlements
A perfectly competitive firm should continue to expand output until
a. total revenue exceeds total costs. b. total revenue exceeds variable costs. c. marginal revenue equals marginal costs. d. average revenue equals variable costs.
The Environmental Protection Agency was created in
A. the 1930s. B. the 1990s. C. the 1980s. D. the 1960s.