A competitive market is one in which:
A. fully informed price-taking buyers and sellers easily trade a standardized good.
B. few large sellers compete for a majority of the market share.
C. government oversees its operation.
D. individual sellers and buyers have a lot of influence over market price.
A. fully informed price-taking buyers and sellers easily trade a standardized good.
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All of the following are considered input barriers to entry except:
A) control of a key raw material by a single firm. B) the ability to obtain financing for capital projects at more favorable rates than potential competitors. C) the fact that workers in a particular industry belong to a union. D) a patent on a specialized type of capital that is needed to produce a particular product.
Economists are concerned with an individual's
A) needs because needs represent the most important goods to an individual. B) needs because economists define needs to be the goods people need to survive. C) wants because, unlike needs, wants lead to shortages in the economy. D) wants because the existence of wants leads to scarcity.
The price elasticity of demand for a good produced by a monopolist
A) equals zero as long as the good has no close substitutes. B) is always inelastic since the demand curve slopes down. C) does not equal zero because there will always be some substitutes, however imperfect they may be. D) does not equal zero because every good has at least one good substitute for it.
If full employment GDP is $8 trillion and equilibrium GDP is $7 trillion
A. there is definitely an inflationary gap. B. there is probably an inflationary gap. C. there is definitely a recessionary gap. D. there is probably a recessionary gap.