A characteristic that is important, but not essential to defining a perfectly competitive market is:
A. goods are standardized.
B. firms can freely enter and exit the market.
C. buyers and sellers are price takers.
D. All of these are necessary to define a perfectly competitive market.
Answer: B
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The above figures show the market for gasoline. Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?
A) Figure A B) Figure B C) Figure C D) Figure D
Refer to Figure 4-8. With rent control, the quantity supplied is 200 apartments. Suppose apartment owners ignore the law and rent this quantity for the highest rent they can get. What is the highest rent they can get per month?
A) $1,000 B) $1,500 C) $2,000 D) $2,300
Which market type below is regarded as least competitive in Mainstream Economics?
a) Monopoly. b) Oligopoly. c) Monopolistic competition. d) Perfect competition.
When the tax structure of a nation is progressive, as incomes increase, the tax rate:
A. declines. B. remains the same. C. increases. D. is proportional.