In a perfectly competitive market, an increase in market demand
A) raises the price in the short run and attracts new firms in the long run.
B) raises the price in the short run and the long run.
C) lowers the price in the short run and in the long run.
D) has no effect on the price in either the short run or the long run because the firms are price takers.
A
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As part of the "wealth channel of monetary policy," a higher money supply __________ bond prices and thus __________ spending
A) raises; raises consumption B) raises; raises investment C) lowers; lowers consumption D) lowers; lowers investment
A market in which a single firm can produce, at a lower cost than multiple firms, the entire quantity of output demanded is called:
A. price gouging. B. diseconomies of scale. C. government intervention. D. a natural monopoly.
Which antitrust law prohibited firms from buying stock in competitors and from having directors serve on the boards of competing firms?
A) the Clayton Act B) the Securities and Exchange Act C) the Sherman Act D) the Robinson-Patman Act
Minimum wages:
A) benefit all workers. B) are usually set below equilibrium wages. C) can reduce wage rigidity. D) can increase unemployment.