Perfectly competitive firms:
A. are individually able to influence the market price.
B. are price takers, since they are not large enough to influence the market price.
C. will succeed by charging a price higher than that charged by the rest of the market.
D. can influence the prices of other firms in the same industry by altering their own prices.
Answer: B
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Consumption spending is $5 million, planned investment spending is $8 million, actual investment spending is $8 million, government purchases are $10 million, and net export spending is $2 million
Based on this information, which of the following is true? A) Aggregate expenditure is greater than GDP. B) Aggregate expenditure is equal to GDP. C) There was an unplanned change in inventories. D) Aggregate expenditure is less than GDP.
Government purchases are defined as
A) only goods purchased by federal, state, or local governments. B) all goods and services purchased by the federal government. C) all goods and services purchased by the federal or state government. D) all goods and services purchased by the federal, state, or local government. E) goods and services purchased from the government.
If the numbers of people officially employed and officially unemployed each increased by 10%, while the non-institutional population increased by 15%, what would be the effect?
a. an increase in the unemployment rate and an increase in the labor force participation rate b. an increase in the unemployment rate and a decrease in the labor force participation rate c. No change in the unemployment rate and an increase in the labor force participation rate d. No change in the unemployment rate and a decrease in the labor force participation rate
If the U.S. government repaid its multitrillion debt by printing (i.e., creating) new money, the effect would be to:
a. Lower nominal interest rates. b. Increase aggregate demand, reduce unemployment, and reduce the nation's price level. c. Increase the real risk-free interest rate. d. Wildly inflate prices.