The four important characteristics that define a perfectly competitive market are:
A. standardized good, same information for buyer and seller, low transactions costs, participants are price takers.
B. standardized information, finished good, no transactions costs, participants are price makers.
C. standardized good, full information, no transactions costs, participants are price makers.
D. standardized good, full information, no transactions costs, participants are price takers.
Answer: D
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The Jones family has an average tax rate of 15 percent. Its marginal tax rate is
A. less than 15 percent. B. 15 percent. C. more than 15 percent. D. impossible to find.
The figure below shows the U.S. market for imported wine. For simplicity, we consider export supply curves to be flat. Chilean wine is available for $480 per barrel and French wine is available for $420 per barrel.
Suppose the United States has a tariff of $80 per barrel on imported wine. Then, the United States joins a trade bloc with Chile. Calculate the loss suffered by the United States arising from trade diversion.
A. $50 million B. $600 million C. $250 million D. $800 million
An individual holds $10,000 in a checking account and the price level rises significantly. Hence
A) the individual's real wealth and consumption expenditure decrease. B) the individual's real wealth decreases but real national wealth increases. C) there is no change in the individual's real wealth. D) the individual's real wealth increases.
Limited personal liability is an advantage for
A) sole proprietorships and partnerships. B) partnerships and corporations. C) sole proprietorships and corporations D) corporations.