A competitive market has many producers competing with one another to satisfy the wants and needs of many consumers. In a free competitive market, the prices of goods and services are set by the consumers and supply and demand aren't regulated by the government. Knowing this, in a free competitive market the rationing mechanism is based on price.
<u>Answer:</u>
less
<u>Explanation:</u>
The law of diminishing marginal utility states that, as consumption of a good or service increases, its marginal utility decreases.
The equilibrium price and quantity increases
Answer:
the first question is true but i dont know the other ones im sorry :( (also sorry if im wrong but this is from what i believe)
Explanation:
According to Okun’s law, for every 1 percentage point by
which the actual unemployment rate exceeds the natural rate, a negative GDP gap
of about 2 percent occurs. The actual unemployment rate exceeds the natural
rate by 4 percent. This is calculated as follows :
Actual unemployment – natural unemployment = 9 – 5 = 4%.
Thus, according to Okun’s law the GDP gap is -8%.
If the potential GDP is $ 500 billion, the actual GDP is 8%
lower than the potential GDP. In other words, 8% of the $ 500 billion is being
forgone because of cyclical unemployment.
GDP forgone = 8% x potential GDP = 8% x 500 = $40 billion
