Suppose That a Competitive Market Is Initially in Equilibrium

question 229

Multiple Choice

Suppose that a competitive market is initially in equilibrium. Then demand increases. If some resources used in production are not available in sufficient quantities for entering firms,

• A)the long-run market supply curve will be upward sloping.
• B)the long-run market supply curve will be perfectly elastic.
• C)in the long run firms will suffer economic losses, leading them to exit the industry.
• D)the number of firms will decrease, and the market will become a monopoly.

Recognize the contributions and criticisms of neo-Freudians such as Carl Jung, Alfred Adler, and Karen Horney regarding Freud's theories.

Comprehend Carl Jung’s theory of archetypes and the collective unconscious.

Identify the role of inferiority feelings in Alfred Adler's psychological theory.

Understand the concept of defense mechanisms and examples of their use in everyday life.

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Definitions:

Imports

Goods and services purchased from foreign producers, brought into a country.

Trade Deficit

A situation where a country imports more goods and services than it exports, resulting in a negative balance of trade.

Exports

Goods or services sent from one country to another for sale.

Imports

Merchandise or services that are brought from one nation into another for retail purposes.