In a perfectly competitive market, economic forces are controlled by government policy makers.
Answer the following statement true (T) or false (F)
False
In a perfectly competitive market, the invisible hand of the market operates freely, without restriction on entry by policy makers.
You might also like to view...
Which of the following is NOT true about price floors?
A) Consumer surplus is always lower than it would be in the competitive equilibrium. B) Producer surplus could be lower, higher, or the same as it would be in competitive equilibrium. C) Producer surplus could be negative as the result of a price floor. D) Producers will often respond to a price floor by cutting production to the point at which price equals marginal cost. E) The total producer surplus depends on how producers respond to the price floor in determining their output level.
Which of the following is true of import tariffs and quotas?
a. They benefit domestic producers. b. Domestic consumers gain because they purchase the output of domestic firms. c. Specialization and comparative advantage are advanced by tariffs and quotas. d. They tend to expand the volume of world trade. e. Because they increase the output levels of domestic firms, they tend to lower domestic prices.
Use the figure below to answer the following question.
The diagram above shows three supply curves for apples. A movement from point a to point b is caused by a change in the
A. price of resources used to produce apples. B. technology of apple farming. C. number of apple farmers. D. price of apples in the market.
Externalities always consist of benefits that are not confined to the person or organization that decides how much of a good to produce or consume.
Answer the following statement true (T) or false (F)