Which of the following is a characteristic of perfect competition?
a. Individual firms have the power to set prices.
b. Firms produce differentiated products.
c. New firms can easily enter the market.
d. There are only a few very large firms producing all output in the market.
C
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Ron spends $150 on movie tickets and pizza. The price of a pizza is $10 and a movie ticket is $7.50
With the quantity of movies measured along the vertical axis, the slope of Ron's budget line (with movies on the vertical axis) is ________ per pizza A) 1.33 movies B) -1.33 movies C) 0.75 of a movie D) -0.75 of a movie
Refer to Figure 23-3. Suppose that investment spending increases by $10 million, shifting up the aggregate expenditure line and GDP increases from GDP1 to GDP2. If the MPC is 0.9, then what is the change in GDP?
A) $9 million B) $10 million C) $90 million D) $100 million
Several countries in the world have failed to "converge" with industrialized countries. What does this mean about their economic growth rates? Explain why poorer countries have failed to "catch up", in terms of the pillars of economic growth. Are there any special problems facing these countries?
The distinctive feature of a progressive tax is that the dollar value of taxes paid rises as income rises
Indicate whether the statement is true or false