Which of the following statements is true about a competitive market? A competitive market
A) has a handful of sellers but always has many buyers.
B) must have a physical location.
C) includes markets for goods and services but not for inputs.
D) has so many buyers and sellers that no one can influence the price.
E) has one seller competing to sell his or her product.
D
You might also like to view...
Imagine that the economy is at a point that is above both AA and DD, where both the output and asset markets are out of equilibrium. Which first action is TRUE?
A) The economy will stay at this level in the short run. B) The exchange rate will first drop to a point on the AA schedule. C) The exchange rate will first move to a point on the DD schedule. D) The AA-DD equilibrium will shift to the position of the economy. E) The exchange rate will first move left to a position on the AA schedule.
Which of the following would not be considered physical capital?
A. An optical lens B. A trained physicist C. A spotlight D. A clipboard
The opportunity cost of any action is
a. irrelevant to economic theory b. limited to the out-of-pocket cost incurred c. the sunk cost plus the markup on materials and labor d. what we gain in the process of consumption e. what is sacrificed to pursue that action
Valeria is a closed economy, where consumption totals $3 billion, tax payments are $300 million, government spending is $1 billion, and GDP is $5 billion. Private saving amounts to
a. $1.7 billion and Valeria's government runs a budget deficit. b. $1.7 billion and Valeria's government runs a budget surplus. c. $1 billion and Valeria's government runs a budget deficit. d. $1 billion and Valeria's government runs a budget surplus