The four important characteristics that define a perfectly competitive market are:
A. standardized good, full information, no transactions costs, participants are price takers.
B. standardized information, finished good, no transactions costs, participants are price makers.
C. standardized good, same information for buyer and seller, low transactions costs, participants are price takers.
D. standardized good, full information, no transactions costs, participants are price makers.
A. standardized good, full information, no transactions costs, participants are price takers.
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The Sierra Club's report (linked to in the Learning Area) highlights the positive effects of NAFTA on communities and the environment.
Answer the following statement(s) true (T) or false (F)
Which of the following is NOT a voluntary exchange?
A) Tom's car is stolen from in front of his house. B) Marie buys groceries. C) Scott pays $10,000 for tuition and fees this semester. D) Emily buys a $1,000 plane ticket to fly from New York to Dallas on short notice.
The cross elasticity between two goods, X and Y, is positive. From this, we can conclude that goods X and Y are:
A. substitute goods. B. complementary goods. C. unrelated goods. D. inferior goods.
Figure 34-2
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In Figure 34-2, if the United States and Mexico are negotiating to trade wheat for petroleum,
A. the United States must receive more than 1 2/3 units of petroleum for a unit of wheat. B. Mexico must receive more than 1 2/3 units of petroleum for a unit of wheat. C. the limits of the agreement are between 1 unit of wheat for 2/3 unit of petroleum for the United States and 1 unit of wheat for 1 1/2 units of petroleum for Mexico. D. if the agreement is formalized at 1 unit of wheat for 1 unit of petroleum, then Mexico will benefit from the trade but the United States will not.