Which is a required characteristic of a perfectly competitive industry?
A) There are few firms so that none can influence market price.
B) Products are highly differentiated.
C) Barriers to entry are high.
D) None of the above
D
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The small group of East Asian countries that experienced high rates of growth in the 1980s and 1990s are referred to as
A) industrial countries. B) newly industrializing countries. C) countries with low standards of living. D) education-deprived countries.
Price ceilings set below the equilibrium create:
A. externalities. B. unemployment. C. shortages. D. surpluses.
According to the Keynesian approach, a decrease in taxes
A. will increase consumption by an amount of less than the change in taxes. B. will increase consumption exactly by the amount of the taxes. C. will decrease consumption, as the government will have to spend less. D. will not impact consumption, as most consumption is autonomous.
Which of the following would cause both the equilibrium price and equilibrium quantity of barley (assume that barley is an inferior good) to increase?
A) an increase in consumer income B) a drought that sharply reduces barley output C) a decrease in consumer income D) unusually good weather that results in a bumper crop of barley