Refer to the above diagram. If this is a competitive market, price and quantity will move toward:
A. $20 and 150, respectively.
B. $60 and 200, respectively.
C. $60 and 100, respectively.
D. $40 and 150, respectively.
Answer: D
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A demand schedule shows
A. the “market potential” for a product. B. how much consumers are willing and able to buy at different prices. C. possible combinations of output under different conditions. D. how much producers would like to sell at different prices. E. All of these responses are correct.
The average propensity to consume is
A) real consumption expenditures divided by real saving. B) real saving divided by real consumption expenditures. C) real consumption expenditures divided by real disposable income. D) real disposable income divided by real consumption expenditures.
Which of the following would be consistent with the notion of a competitive market process, but would be inconsistent with the notion of perfect competition?
A) Cost-plus-markup pricing B) Freedom of entry C) Price taking behavior D) Large numbers of buyers and sellers E) All of the above.
Why do Americans want to buy pounds?
a. To buy goods and services from British firms and to buy British assets. b. To purchase a British soccer shirt in New York. c. To purchase stock in British companies on the New York Stock Exchange. d. To purchase Canadian bonds. e. To buy goods and services only.