Which of the following would result from a technological advance in a perfectly competitive market?
a. The market demand curve will shift rightward.
b. Consumers will benefit as the price declines.
c. Producers will benefit as long-run profits rise.
d. The market supply curve will shift leftward.
e. In a constant-cost industry, the price will not change in the long run.
B
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Which one of the following statements is NOT true?
A) The classical model assumes that people suffer from money illusion. B) The classical model assumes that no single seller of a commodity can affect its price. C) The classical model assumes that pure competition exists. D) The classical model assumes that people are motivated by self-interest.
If the Fed sells government securities to a member of the nonbank public, then the resulting effect on the quantity of money is
A) that there is no change in the quantity of money. B) much larger than if the securities were sold to a bank. C) much smaller than if the securities were sold to a bank. D) the same as if the securities were sold to a bank. E) None of the above answers is correct.