Ag econ 3
A pure monopolist is called a price taker.
False
Firms grow through either internal or external expansion, or both.
True
A monopoly is efficient because the value to society of the last unit produced by the monopolists is always greater than its opportunity cost to society.
False
An aggregate demand (AD) curve shows the amount of goods and services that will be supplied by produces at various price levels during a given period of time.
False
Changes is macroeconomic policies affect all sectors of the economy, but have little impact on agriculture.
False
Expansionary fiscal policy should increase domestic farm prices, export prices, and input prices, but decrease interest rates. Contractionary monetary policies should have the opposite effects.
False
External economies of sale involve efficiencies gained through the growth of a firm.
False
The term "imperfect competition" covers all those market possibilities that do not meet the conditions of pure competition.
True
A purely competitive firm is called a price searcher.
False
Agricultural producers are not allowed to form bargaining groups to counterbalance buyers' market power.
False
Expansionary monetary policy should increase domestic farm prices, export prices, input prices, and the interest rate and reduce farm export prices. Contractionary fiscal policies should have the opposite affects.
False
Fiscal policy deals with money supply and credit conditions in the economy.
False
Ford and General Motors operate in a purely competitive market.
False
Internal economies of sale involve efficiencies gained through the growth of an industry.
False
Monetary policy deals with federal government spending and taxing.
False
Nominal values are the dollar values of goods and services expressed in constant dollars.Nominal values are adjusted values that have removed the effects of inflation or deflation.
False
Real values are the dollar values of goods and services at their current market prices.
False
The competitive firm's demand curve and market curve are one in the same.
False
The conditions necessary for "pure monopoly" are 1) Many firms 2) A homogeneous product and 3) complete freedom of entry and exit.
False
The economy cannot be at equilibrium at less than or more than full employment GDP.
False
A pure monopolist is the only seller in a market; barriers to entry prevent competition from others.
True
An aggregate supply (AS) curve shows the amount of goods and services that households, businesses, and government are willing to purchase at various price levels during a given period of time.
True
Antitrust laws are designed to prevent monopolistic firms from driving out competitors and to protect consumers from unfair pricing.
True
Changes in monetary policy and fiscal policy shift the aggregate demand curve and the aggregate supply curve.
True
GDP can be measured by either the expenditure method or the income method.
True
GDP is the total market value of all finished goods and services produced within the domestic economy in a given period of time.
True
Macroeconomic policies of other nations can offset the intended effects of U.S. macroeconomic policies.
True
Macroeconomics deals with totals or aggregates, studying characteristics of the entire economy in such dimensions as total employment, consumer incomes, and general price level.
True
Market models such as pure competition and pure monopoly are useful in evaluating the economic efficiency of an industry.
True
Market prices are signals that direct proportion and consumption decisions.
True
Public regulation of the markets is intended to protect the public by preserving competition in markets.
True
Purely competitive firms in equilibrium, with zero economic rent, are economically efficient because the cost of society's goods and services are minimized.
True
Shifts in AD are caused by changes in spending by consumers, businesses, the government and foreign buyers.
True
Shifts in AS are caused by changes in technology, labor productivity, input prices, and other external factors (such as climate changes) that affect production.
True
Special acts by congress provide bargaining groups with little immunity from antitrust legislation.
True
The conditions necessary for "pure monopoly" are 1) a single seller 2) differentiated product 3) no freedom of entry.
True
The length-of-run influences the elasticity of the market supply curve.
True
The market demand curve slopes upward to the right. The firm in pure competition faces a horizontal demand curve; the pure monopolists demand curve is the market demand curve.
True
The monopolist maximizes the profit in the same manner as a purely competitive firm by producing the output at which marginal revenue equals marginal cost, but the monopolist's marginal revenue does not equal price as it does for the firm in pure competition.
True
The monopolist's demand curve is the market demand curve.
True
The monopolist's marginal revenue curve lies below the demand curve because market demand curves always slope downward to the right.
True
