Which of the following statements about a perfectly competitive market are TRUE?

I. The perfectly competitive industry faces an upward sloping labor supply curve.
II. The individual firm in a perfectly competitive industry faces a perfectly elastic labor supply curve.

A) I only
B) II only
C) both I and II
D) neither I nor II

Answer: C

Economics

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Which of the following is a capital resource?

A. A computer programmer. B. A corporate bond issued by a computer manufacturer. C. Silicon (sand) used to make computer chips. D. A piece of software used by a firm.

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Is it possible for a country to run a trade deficit and yet have the value of its currency not change? Use a supply and demand model of a foreign exchange market to explain how this could occur.

What will be an ideal response?

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