Both buyers and sellers are price takers in a perfectly competitive market because
A) each buyer and seller is too small relative to others to independently affect the market price.
B) both buyers and sellers in a perfectly competitive market are concerned for the welfare of others.
C) the price is determined by government intervention and dictated to buyers and sellers.
D) each buyer and seller knows it is illegal to conspire to affect price.
A
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If the personal assets of the owners can be claimed if the business is bankrupt, the owners are said to have
A) a corporation type of business. B) limited liability. C) separation of ownership from control. D) unlimited liability.
All other things held constant, premiums on options will increase when the
A) exercise price increases. B) volatility of the underlying asset increases. C) term to maturity decreases. D) futures price increases.
The practice of approving mortgages in order to sell them as mortgage-backed securities is known as ________
A) originate-to-distribute B) principal-agent engineering C) predatory lending D) a credit default swap
If self-correction causes prices to fall less than nominal wages, both output and real wages will decrease
a. True b. False Indicate whether the statement is true or false