In a competitive market, no single producer can influence the market price because
a. many other sellers are offering a product that is essentially identical.
b. consumers have more influence over the market price than producers do.
c. government intervention prevents firms from influencing price.
d. producers agree not to change the price.
a
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Perfect competition describes a firm's behavior in a market model where:
a. there are few firms producing identical products. b. there are few firms producing highly differentiated products. c. there are many firms producing identical products. d. there are many firms producing highly differentiated products. e. there are barriers to entry and exit for the new firms.
Economist John Maynard Keynes noted one of the main contributors to the Great Depression in the 1930s was:
A. insufficient spending causing below natural rate output. B. poor infrastructure for manufacturing. C. a labor market that could not meet the demands of the market at the time. D. an insufficient agriculture sector, unable to produce enough food for the large US population.
The Fed can control stock market purchases by adjusting the
a. discount rate b. legal reserve requirement c. margin requirement d. federal funds rate e. stock loan rate
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.