Which of the following is closest to a perfectly competitive market?
A) the soda pop market
B) the market for bread
C) the market for sugar
D) the market for fast food
Answer: C
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The amount by which aggregate expenditures exceed those associated with the full-employment level of domestic output can best be described as
A. the multiplier. B. a recessionary expenditure gap. C. the average propensity to save. D. an inflationary expenditure gap.
Pure public goods:
A. are, by definition, goods and services provided by the government. B. should always be provided by government. C. should always be provided by private firms. D. are frequently provided by the government, and are sometimes provided by private firms.
An increase in demand caused no change in the equilibrium price. Thus, supply must be
A. perfectly inelastic. B. perfectly elastic. C. inelastic. D. elastic.
In some markets consumers may buy many different brands of a product. Which of the statements below best represents a situation where demand for a particular brand would be very elastic?
A. "The different brands are almost identical. I always buy the cheapest" B. "I use so little of that product that when I do buy it, I don't pay much attention to the price" C. "The brand I buy is so superior to other available brands that I hardly consider the others" D. "I pinch pennies in buying other products, but like most people I feel I owe it to myself to get the best brand of this product"