Perfectly competitive markets are efficient because
A. the long run equilibrium assures that the prices of resources will not increase.
B. they always reach equilibrium.
C. the cost to society for producing the goods is exactly equal to the value that society places on the good.
D. firms in the market are price takers.
Answer: C
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The "time inconsistency" argument is that a downward shift of the short-run Phillips Curve, which comes about with a ________ of inflationary expectations, is more likely when monetary policy ________
A) lowering, follows a rigid rule B) lowering, is at the discretion of policymakers C) raising, follows a rigid rule D) raising, is at the discretion of policymakers
Countries should specialize and import goods in which they have a comparative disadvantage
a. True b. False Indicate whether the statement is true or false