The demand curve of a perfectly competitive firm is determined by
a. the price the firm chooses to charge.
b. the intersection of the market demand and supply curves
c. the reputation of the firm.
d. the level of the quality of the good the firm produces.
Answer: b. the intersection of the market demand and supply curves
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How is net national product (NNP) calculated?
a. Saving is added to the total income of a nation's citizens. b. Saving is added to the total income earned within a nation. c. Depreciation losses are subtracted from the total income of a nation's citizens. d. Depreciation losses are subtracted from the total income earned within a nation.
Disclosing information in more usable ways to decision-makers:
A. increases instances of rational ignorance. B. can nudge people toward making better decisions. C. will never affect a person's decision. D. effectively eliminates certain choices from a person's options.
An effective price ceiling is best defined as a price:
A. lower than any supplier is willing to sell. B. imposed by government below equilibrium price. C. higher than any consumer is willing to pay. D. imposed by government above equilibrium price.
Changes in the relative prices of two goods indicate
A. Nominal price changes adjusted for the inflation in the price of the goods. B. Changes in the desired mix of output. C. That average prices for the period must not be stable. D. Inflation.