Which of the following statements about the perfect competitor is INCORRECT?
A) The perfectly competitive firm is always a price taker.
B) The perfect competitor sells a homogeneous commodity.
C) If an individual firm raises price, it will lose business.
D) The products made by a perfectly competitive firm have no close substitutes.
D
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When the price of a good falls, consumers buy a larger quantity because of the ________ effect and the ________ effect
A) normal; inferior B) substitution; income C) substitute; complement D) supply; demand
If you buy a brand new, American-made laptop computer to track stock prices in your career as a stockbroker, then it will be classified in GDP accounting as
a. a change in business inventory b. a consumption expenditure c. an investment expenditure d. a service good e. a household expenditure
Economists dismiss the idea that lower tax rates can lead to higher tax revenue, because there is a consensus that the relevant elasticities of demand and supply are very low
a. True b. False Indicate whether the statement is true or false
Ronald Coase argued that property rights should never be assigned to the party that is generating a negative externality.
Answer the following statement true (T) or false (F)