In perfect competition, when firms are maximizing profits and households are maximizing utility,
A. individual welfare is maximized, but social welfare is not.
B. voluntary exchange can be used to make both firms and households better off.
C. the outcome is inefficient.
D. Pareto optimality has been obtained.
Answer: D
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Gross domestic product is the sum of the purchase price multiplied by the quantity of:
a. goods and services exchanged during the period. b. final goods and services produced domestically during the period. c. goods and services produced domestically during the period minus the depreciation of productive assets. d. final goods and services plus intermediate goods produced domestically during the period.
Which of the following assets is most liquid?
a. Funds in a checking account. b. A car. c. A home. d. A municipal bond.
This table shows individual demand schedules for a market.Price of GoodBarney's DemandBetty's Demand$0.002023$0.501818$1.001611$1.50148$2.00126$2.50105According to the table shown, what will the equilibrium price be in this market?
A. $2.00 B. $0.50 C. $1.50 D. Cannot be determined without more information.
For a given supply curve, an increase in demand will typically
a. increase price, but quantity could change in either direction b. increase quantity, but price could change in either direction c. increase price but leave quantity unchanged d. decrease both quantity and price e. increase both quantity and price