The study of microeconomic theory focuses on the:
A) Interaction of international trade and domestic production of goods and services.
B) Operation of the entire economy.
C) Role of the banking system in the economy.
D) Structure and performance of markets and the operation of the price system.
Ans: D) Structure and performance of markets and the operation of the price system.
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Answer the following statements true (T) or false (F)
1. In perfect competition, if the market price is at the same level as the minimum point of the firm’s average total cost curve, the best the firm can hope for is to break even. 2. If new firms enter a perfectly competitive industry, the market price of the finished product will rise. 3. An increase in market demand for a product can raise the MR for a firm in perfect competition. 4. Under perfect competition in the short run, profits among firms can differ if some firms use their resources more efficiently. 5. Since all producers have the same average revenue under conditions of perfect competition, they all have the same profits in the short run.
The product life cycle model says that comparative advantage in manufactured goods may move from one country to another as a product becomes more standardized
Indicate whether the statement is true or false
A form of implicit collusion in which one firm consistently follows the actions of another firm is:
A) predatory pricing. B) a Webb-Pomerene association. C) parallel conduct. D) only illegal in Europe.
U.S. health care spending amounts to _____ per year.
A. $7.8 billion B. $1.1 million C. $2.2 trillion D. $4.4 trillion