If the entry of new firms in a perfectly competitive industry substantially increases the market demand for resources,
a. this reduces the market price of resources.
b. this raises the market price of resources.
c. the market price of resources does not change.
d. this lowers the ATC curves of individual firms.
b. this raises the market price of resources.
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Refer to Table 11.1. If exports decrease by 30, what is the new equilibrium level of output?
A) 1,700 B) 2,300 C) 6,800 D) 9,200
If a perfectly competitive firm manufacturing chairs produces 100 more chairs, what happens to the market price of a chair?
What will be an ideal response?
Which statement best describes the trend in land allocation laws from the Land Ordinance of 1785 to the Homestead Act of 1862?
a. The changes were more favorable to those who held a conservative belief about land allocation. b. The changes were more favorable to those who held a liberal belief about land allocation. c. There was no consistent trend in the changes; some changes favored the conservatives and others favored the liberals.
Give an example of how an expansionary policy can fail given certain economic conditions.
What will be an ideal response?