Which of the following is not a characteristic of a perfectly competitive market structure?
a. The firm is a price-taker.
b. The firm is a profit maximizer.
c. The firm's demand curve is horizontal.
d. The market demand is downward sloping.
e. The firm can earn an economic profit in the long run.
E
You might also like to view...
Scott worked in a large foreign country. He retired in 2008 and his pension income is fixed at $1,500 per month. The table above gives the CPI in this country. What is the real monthly value of his pension in the years between 2008 and 2011?
What will be an ideal response?
In-kind transfer payments might not be used in the desired way due to _____
a. the fungibility of money b. poor incentives c. incomplete information d. the incentive to substitute into leisure
In your intermediate macroeconomics course, government expenditures and the money supply were treated as exogenous, in the sense that the variables could be changed to conduct economic policy to influence target variables,
but that these variables would not react to changes in the economy as a result of some fixed rule. The St. Louis Model, proposed by two researchers at the Federal Reserve in St. Louis, used this idea to test whether monetary policy or fiscal policy was more effective in influencing output behavior. Although there were various versions of this model, the basic specification was of the following type: ?ln(Yt) = ?0 + ?1?ln mt + ... + ?p?ln mt-p-1 + ?p+1?ln Gt + ... + ?p+q?ln Gt-q-1 + ut Assuming that money supply and government expenditures are exogenous, how would you estimate dynamic causal effects? Why do you think this type of model is no longer used by most to calculate fiscal and monetary multipliers? What will be an ideal response?
Which of the following financial organizations have the ability to influence the supply of reserves in the United States?
A) Only public sector banks B) The World Bank C) Only private commercial banks D) The Fed