A perfectly competitive market is a market that meets the conditions of
A. few buyers and sellers, all firms selling identical products, and no barriers to new firms entering the market
B. many buyers and sellers, all firms selling differentiated products, and no barriers to new firms entering the market
C. many buyers and sellers, all firms selling identical products, and significant barriers to new firms entering the market
D. many buyers and sellers, all firms selling identical products, and no barriers to new firms entering the market
Ans: D. many buyers and sellers, all firms selling identical products, and no barriers to new firms entering the market
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Selling a product in a foreign nation at a price less than its cost of production is called
A) infant-industry exploitation. B) absolute advantage. C) dumping. D) net exporting.
When buying a car from a commission salesman you improve your bargaining position by
a. shopping when the new model year cars have just arrived b. shopping when the showroom is full of customers c. shopping when the car lot has many cars left unsold d. shopping toward the beginning of the month
Which is not an example of price discriminating by separating markets?
a. offering discounts for students with IDs. b. charging lower prices for airline tickets with a Saturday stay-over. c. selling 13 bagels (a "baker's dozen") for the price of 12. d. selling snowblowers at a discount in relatively warmer climates.
Which of the following is an argument in favor of a balanced budget rule?
a. Some economists believe that rules are better than discretion. b. Per-capita debt is small relative to lifetime income. c. The effect of deficit spending on future generations depends in part on what the government buys. d. Other government policies also redistribute income across generations.