In a perfectly competitive market, if P > MC, then
A) too little output is being produced.
B) too much output is being produced.
C) production is efficient, as the firm is earning profits.
D) the firm is paying a price for resources that is too high.
Answer: A
Economics
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A decrease in expected inflation will
A) increase the natural rate of unemployment. B) shift the short-run Phillips curve to the left. C) shift the long-run Phillips curve to the left. D) reduce real wages.
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In the two-country, two-commodity model, both countries can gain from trade as long as their relative advantages and disadvantages in producing different goods are different.
Answer the following statement true (T) or false (F)
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