Which of the following is NOT true according to Say's law?
A) Producing goods and services generates the means and the willingness to purchase other goods and services.
B) Desired expenditures will always be higher than actual expenditures.
C) Supply creates its own demand.
D) No overproduction is possible in a market economy in the long run.
B
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Roger owns a small health store that sells vitamins in a perfectly competitive market. If vitamins sell for $12 per bottle and the average total cost per bottle is $12.50 at the profit-maximizing output level, then in the long run
a. more firms will enter the market. b. some firms will exit from the market. c. the equilibrium price per bottle will fall. d. average total costs will fall.
The primary argument against active monetary and fiscal policy is that
a. attempts to stabilize the economy do not constitute a proper role for government in a democratic society. b. these policies affect the economy with a long lag. c. these policies affect the economy too quickly and with too much impact. d. history demonstrates that interest rates respond unpredictably to active policies, leading to unpredictable effects on income.
A factual claim about how the world actually works is a ________ statement.
A. positive B. irrational C. normative D. marginal
An agribusiness firm that has monopsony power in a local market will buy less product at a lower price from local producers compared to a competitive market outcome.
a. true b. false