Which of the following is a feature of a perfectly competitive market?
A) There is only one seller of a commodity.
B) The government rations commodities.
C) Commodities are auctioned to the highest bidder.
D) Each seller is too small to influence the market price.
D
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An economy with better technology is likely to:
A) achieve higher productivity. B) have lower levels of human capital. C) have less capital stock. D) use more labor than capital.
Comparative advantage is
A) the ability to perform an activity at a lower opportunity cost than anyone else. B) the ability to perform an activity at a higher opportunity cost than anyone else. C) the ability to perform an activity at a zero opportunity cost. D) another name for absolute advantage.
According to purchasing power parity, the relationship among the domestic price (P), the foreign price (P ), and the nominal exchange rate (e), can be written as
A) P = e - P . B) P = P - e. C) P = eP . D) P = e/P .
In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. A price floor of $9 will result in a
A. shortage of 12 units. B. surplus of 12 units. C. shortage of 30 units. D. surplus of 30 units.