Which of the following is closest to a perfectly competitive market?
A. the market for breakfast cereal
B. the market for automobiles
C. the market for corn
D. the pizza market
Answer: C
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In Chapter 11, depreciation is assumed to be
A) a fixed proportion of real GDP. B) a fixed proportion of the capital stock. C) a fixed absolute amount. D) zero. E) a fixed proportion of the capital-labor ratio.
The production of cigarettes is highly automated; however, a worker is required to monitor each machine. Machines and workers do not interact with one another. Given this information, there are most likely
A) economies of scale. B) economies of scope. C) constant returns to scale. D) increasing returns to scale.
An example of a poverty trap is
a. extended time periods without war b. a lack of mineral wealth c. a dysfunctional or corrupt government d. laws and regulations to help detect fiscal fraud e. None of the answers is correct
For any particular period of time, say a year, the supply of exhaustible resources:
a. decreases infinitely with an increase in price. b. remains unaffected by any change in price. c. increases infinitely with an increase in price. d. increases to a certain extent with an increase in price. e. decreases to a certain extent with an increase in price.