Which of the following describes the difference between the market demand curve for a perfectly competitive industry and the demand curve for a firm in this industry?
A) The market demand curve is downward sloping; the firm's demand curve is a vertical line.
B) The market demand curve is downward sloping; the firm's demand curve is a horizontal line.
C) The market demand curve is a horizontal line; the firm's demand curve is downward sloping.
D) The market demand curve can not have a constant slope; the firm's demand curve has a slope equal to zero.
B
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"When a person is more productive in producing a good or service than another person, the first person has the comparative advantage in producing the good." Is this assertion correct or incorrect? Explain your answer
What will be an ideal response?
Many countries dropped their use of money-growth targets in the 1980s because
A) they were in severe recessions. B) political opponents claimed money-growth targeting helped the rich at the expense of the poor. C) money demand became unstable. D) it was too difficult to coordinate monetary policy with fiscal policy.