Which of the following characterizes a competitive agricultural market?
A. The firm has a downward-sloping demand curve.
B. Price is determined by market demand and market supply.
C. Economic profit is earned in the long run.
D. The market has a horizontal demand curve.
Answer: B
Economics
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As the money wage rate increases,
A) potential GDP increases. B) potential GDP decreases. C) aggregate supply increases. D) aggregate supply decreases. E) aggregate supply and potential GDP do not change.
Economics
If the world price of a good is below the no-trade domestic price, a country
A) will benefit from exporting the good. B) will benefit from importing the good. C) cannot benefit from trade. D) has a comparative advantage in the production of that good. E) will not engage in trade for that good.
Economics