The market demand curve in a perfectly competitive industry is horizontal, while the demand curve ...

The market demand curve in a perfectly competitive industry is horizontal, while the demand curve faced by an individual perfectly competitive firm is downward sloping.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

The supply curve of land, in the market for uses of land, is:
 a. perfectly inelastic.
  b. nonexistent.
  c. perfectly elastic.
  d. positively sloped.
  e. negatively sloped.

QUESTION 3

The closer the exchange price is to the valuation of the buyer, the greater the buyer's share of the economic value created by the exchange.
  Indicate whether the statement is true or false

QUESTION 4

Diminishing marginal returns means that as you combine more units of a variable resource with a set of fixed resources:
 a. the average physical product of the fixed inputs increases at an increasing rate.
  b. the marginal physical product of the variable input decreases.
  c. the total output decreases.
  d. the marginal physical product of the variable input increases at a constant rate.
  e. the marginal physical product of the variable input increases at a decreasing rate.

QUESTION 5

The market demand curve in a perfectly competitive industry is downward sloping, while the demand curve faced by an individual perfectly competitive firm is horizontal.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

Lobbying efforts by individuals and firms:
 a. increases productive efficiency in the economy.
  b. merely transfer income and wealth from one individual or group to another.
  c. enables the firms to experience economies of scale.
  d. improves the overall standard of living in the economy.
  e. helps the economy to produce the efficient level of output.