If consumers cannot readily switch to a close substitute when the price of a good increases, the demand for that good is likely to be:
A. unit elastic.
B. perfectly elastic.
C. inelastic.
D. elastic.
Answer: C
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In a perfectly competitive market, firms take:
a. the money wage as exogenous, the price level as endogenous. b. the money wage and price level as exogenous, the quantity of labor as endogenous. c. the money wage and price level as endogenous. d. the quantity of labor as exogenous.
In perfect competition, environmental externalities need not distort the allocation of resources providing
a. transactions costs are zero. b. average costs are constant for all output levels. c. firms install pollution control equipment. d. the government sets realistic pollution standards.
GDP is: a. the total value of all consumer expenditures within a given period
b. national income after taxes. c. the total value of all final goods and services plus intermediate goods and services produced domestically within a given period. d. the value of all final goods and services produced domestically within a given period.
Invention is the act of generating a new idea
a. True b. False Indicate whether the statement is true or false