Which is FALSE about perfect competition?
A) There are numerous sellers.
B) Market entry and exit is unrestricted.
C) There is no ability to set price.
D) There is considerable product differentiation.
Answer: D
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If the government regulates the price a monopoly can charge, and the price ceiling is set below what the competitive market price would be, then
A) a shortage will exist. B) a surplus will exist. C) producer surplus is maximized. D) consumer surplus is maximized.
Determinants of income differences include all of the following EXCEPT
A) age. B) marginal productivity. C) moral hazard. D) discrimination.
Utility is maximised when the utility for the last euro spent on each product is maximised, this is explained by
a) Law of Diminishing Marginal Utility. b) Equi-Marginal Principle. c) Total Utility. d) Marginal Utility.
Which of the following is part of gross private domestic investment?
A. a decline in consumer debt B. purchases of pizza pie for a family dinner C. a positive change in business inventories D. purchases of stocks and bonds