Most Economists Like Perfect Competition Because

question 67

Multiple Choice

Most economists like perfect competition because

• A) it raises profits.
• B) it reduces the role of government in providing public goods.
• C) economists appreciate perfect systems.
• D) it results in economic efficiency.
• E) none of these; economists do not like perfect competition.

Grasp how discrimination in the labor market, including taste-based and statistical discrimination, affects wage disparities and occupational segregation.

Understand the concept and relevance of the Lorenz curve in representing income distribution.

Grasp the significance of the Gini ratio as a measure of income inequality.

Identify the impact of income distribution on various population segments.

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Definitions:

IO Perspective

Refers to the Industrial Organization perspective, which examines the behavior of firms, market structures, and their interactions within an industry.

Firm's Profitability

a measure of how effectively a company generates profit compared to its revenues, indicating its financial health and sustainability.

Different Industries

Various sectors of the economy that produce different types of goods and services, such as manufacturing, technology, and healthcare.

Higher Profits

The increased financial gain achieved by a business when its revenue exceeds its expenses by a greater margin than before.