Which of the following characteristics is required for a perfectly competitive market?
a. The goods offered for sale are exactly the same.
b. There are so many buyers and sellers that no single buyer or seller has any influence over the market price.
c. It is difficult for new sellers to enter the market.
d. Both a and b are correct.
d
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You observe that more labor is employed and the wage rate increases. This set of events could have been the result of a
A) rightward shift of the labor demand curve. B) leftward shift of the labor supply curve. C) rightward shift of the labor supply curve. D) leftward shift of the labor demand curve.
For which of the following will the law of one price hold best?
A) shirt B) butter C) gold D) milk
The organization formed to allow governments to borrow to stabilize exchange rates is the
a. International Trade Commission b. World Trade Council c. United Nations' Economic Development Council d. International Monetary Fund e. World Bank
Flu vaccinations of school children have the unintended effect of protecting the vulnerable elderly from contracting the virus. This is an example of a:
A. goods distribution. B. social force. C. free rider problem. D. positive externality.