For firms that sell one product in a perfectly competitive market, the market price is:
A. constant, regardless of quantity sold.
B. equal to marginal revenue for a firm.
C. equal to average revenue for a firm.
D. All of these are true.
Answer: D
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Consumer surplus increases whenever the price of a good decreases
a. True b. False Indicate whether the statement is true or false
An economy is said to be in the liquidity trap when the short-term ________ is down to zero
A) real interest rate on corporate bonds B) nominal interest rate on government bonds C) nominal interest rate on corporate bonds D) real interest rate on government bonds
Irving Fisher argued for a tax on consumption instead of on income because
A. the standard of living depends not on income, but on how much is consumed. B. consumption is the best indication of ability to pay. C. a tax on consumption raises more revenue than a tax on income. D. a tax on income discourages saving by taxing savings twice.
The Clayton Act of 1914 was passed to prohibit, in part, price discrimination if the effect is to substantially lessen competition or create monopoly
Indicate whether the statement is true or false