An essential characteristic of a perfectly competitive market is:
A. sellers are selling unique products.
B. buyers have complete control over the market price and sellers have none.
C. buyers and sellers have no control over the market price.
D. sellers have complete control over the market price and buyers have none.
Answer: C
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A bank that maintains high NSF fees might also have relatively __________ loan rates, both part of a strategy to attract __________-than-average borrowers
A) low; safer B) low; riskier C) high; safer D) high; riskier
Firms want to capture consumer surplus
Indicate whether the statement is true or false
Which of the following is an example of a positive supply shock?
a. an unexpected labor strike b. a major widespread forest fire c. an unexpected price cut in imported oil d. a decrease in the overall price level
According to the research of Christina Romer and David Romer:
A. a tax reduction of 1 percent of GDP lowers real GDP by roughly 2 to 3 percent. B. a tax increase of 1 percent of GDP lowers real GDP by roughly 2 to 3 percent. C. a tax reduction of 2 to 3 percent raises real GDP by roughly 1 percent. D. a tax increase of 2 to 3 percent lowers real GDP by roughly 1 percent.