Which of following is a key assumption of a perfectly competitive market?
A) Firms can influence market price.
B) Commodities have few sellers.
C) It is difficult for new sellers to enter the market.
D) Each seller has a very small share of the market.
E) none of the above
D
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If the price elasticity of demand for opera tickets in Orlando is 1.00, then the demand for opera tickets in Orlando is
A) unit elastic. B) elastic. C) perfectly inelastic. D) inelastic. E) perfectly elastic.
If the government is successful in internalizing the external costs of production in a market, then:
a. social costs will equal private costs. b. an inefficient level of output will be produced. c. social costs will exceed private costs. d. social costs will be less than private costs. e. social costs will fall to zero.
Which of the following statements is true?
A) In a world of efficiently used scarce resources, more of one good necessarily means less of some other good. B) The law of increasing opportunity costs assumes that all people have the same ability to produce goods. C) Efficiency implies that it is impossible to get more of one good without getting less of another. D) Even if a country has unemployed resources, it can still be operating on its production possibilities frontier (PPF). E) a and c
A flexible exchange rate system guarantees a country will not experience an exchange rate crisis
Indicate whether the statement is true or false