What are four characteristics of pure competition?
What will be an ideal response?
The four are: (1) the presence of a very large number of sellers that act independently in a market; (2) the production and sale of a standardized or homogeneous product; (3) the individual firms are “price takers” in the sense that the seller must accept the going market price for the sale of output; and (4) new firms can easily enter the market and existing firms can easily exit the market.
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The potential money multiplier gives us
A) the maximum potential change in the money supply due to a change in reserves. B) the growth in real national income when the money supply increases. C) the maximum potential change in the money supply due to a change in income. D) the growth in the money supply when income increases.
For a tangible index of well-being, we can regard income as the only barometer necessary
Indicate whether the statement is true or false
Which one of the following is most likely to increase the Herfindahl index of a particular industry?
A. A conglomerate merger. B. A vertical merger. C. A price-fixing arrangement among all the industry firms. D. A horizontal merger.
The graph shown portrays a subsidy to buyers. Before the subsidy is put in place, the producers sold ________ units and received ________ for each of them.
A. 150; $24 B. 150; $40 C. 100; $46 D. 100; $30