In a perfectly competitive industry, any restrictions that prevent new firms from entering
A. reduce the average cost of production.
B. hinder economic efficiency.
C. lead to negative profits.
D. guarantee that all existing firms will earn exactly a zero profit.
Answer: B
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How do fluctuations in autonomous expenditure influence real GDP?
What will be an ideal response?
Wants
A) is another term for needs. B) refer to services while needs refer to goods. C) is the term used by economists instead of needs because needs are not objectively definable. D) are used by economists and refer to the same thing as needs when used by psychologists.
The difference between Gross Domestic Income (GDI) and Gross Domestic Product (GDP) is that
A. GDP is always smaller than GDI. B. GDP is GDI less indirect business taxes and depreciation. C. GDI is GDP less indirect business taxes and depreciation. D. GDI is equal to GDP.
After consuming what quantity of donuts does the consumer in the table below experience diminishing marginal utility?
A. 1 B. 2 C. 3 D. 4