A point outside the budget line is unaffordable to the consumer.
a. true
b. false
a. true
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The essential feature that differentiates imperfectly competitive firms from perfectly competitive firms is that an imperfectly competitive firm:
A. coordinates their output decisions with other firms. B. produces a good with no close substitutes. C. faces a downward-sloping demand curve. D. faces high barriers to entry.
Air pollution is a problem because
A) people are greedy. B) people are not environmentally conscious. C) people make use of air without having to bear all the costs of their actions. D) a market economy does not provide as strong an incentive for environmental cleanup as a socialist economy.
Which type of demand for money causes the demand for money curve to slope downward?
a. Speculative demand. b. Precautionary demand. c. Transactions demand. d. Foreign-exchange demand.
When quantity demanded has increased at every price, it might be because
a. the number of buyers in the market has decreased. b. income has increased, and the good is an inferior good. c. the costs incurred by sellers producing the good have decreased. d. the price of a complementary good has decreased.