Which of the following is a characteristic of perfect competition?
a. substantial barriers to entry
b. homogeneous products
c. few sellers
d. each firm has significant control over the market
b
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Commercial banks are divided into ________ bank Federal Reserve regions?
A. 52 B. 12 C. 19 D. 7
The real interest rate can be approximated by
a. adding the nominal interest rate and the inflation rate b. subtracting the nominal interest rate from the inflation rate c. adding last year's nominal interest rate to this year's d. subtracting the inflation rate from the nominal interest rate e. none of the above
Capital inflow restrictions
A) receive less support from economists than full capital controls. B) may lessen domestic lending booms and risk-taking by domestic banks. C) were imposed in the United States during the late 1990s. D) were imposed in Europe in May 2000.
A deadweight loss:
A. can be large in a perfectly competitive market. B. is a reduction in aggregate surplus below its maximum possible value. C. is independent the amount produced and consumed. D. is equal to the difference between total willingness to pay and the total avoidable cost of production.