Competitive markets usually promote the efficient use of resources. This is because
A. resource owners bear the wealth effects of their decisions.
B. markets usually make equitable choices first.
C. consumers price makers
D. managers always have the proper incentives to make decisions.
Answer: A
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At harvest time the supply of wheat is perfectly inelastic. If the government taxes wheat at $1 a bushel, then
A) the seller pays the entire tax. B) the buyer pays the entire tax. C) the seller and the buyer split the tax evenly. D) the seller and the buyer split the tax but the seller pays more. E) no one pays the tax because the wheat must be harvested or it will go to waste.
If the demand curve for an inferior good is drawn,
A. the curve will generally have a positive slope. B. the curve cannot be drawn; demand curves only exist for normal goods. C. the curve will generally have a negative slope. D. the curve will shift when the price of the good changes.
Refer to Table 19-18. What is real GDP in 2016, using 2011 as the base year?
A) $28,885 B) $11,790 C) $11,200 D) $10,275
Which of the following is not necessarily a characteristic of perfect competition?
a. low prices b. a large number of buyers and sellers c. a homogeneous product d. perfect information e. easy entry and exit in the long run