Which of the following characteristics of competitive markets is necessary for firms to be price takers? (i) There are many sellers. (ii) Firms can freely enter or exit the market. (iii) Goods offered for sale are largely the same
a. (i) and (ii) only
b. (i) and (iii) only
c. (ii) only
d. (i), (ii), and (iii)
b
You might also like to view...
Which combination of factors would most likely increase aggregate demand?
A. An increase in business taxes and a decrease in profit expectations. B. An increase in household indebtedness and a decrease in net exports. C. An increase in net exports and a decrease in government spending. D. An increase in consumer wealth and a decrease in interest rates.
What is the historical relationship in the United States between the unemployment rate and recessions?
A) The relationship depends on whether or not the price level is also changing. B) The unemployment rate rises during a recession and turns negative during the subsequent recovery. C) The unemployment rate rises shortly before a recession begins and declines shortly before it ends. D) The unemployment rate rises soon after a recession has begun and starts to decline sometime after the recovery has started. E) There is no regular or systematic link that can be discerned from the data.
The labor supply curve
a. slopes upward to illustrate that more people will want to work as the real wage increases b. slopes upward to illustrate that changes in the real wage are directly proportional to changes in the nominal wage c. may slope either upward or downward, depending upon the real wage d. slopes downward to illustrate that a decrease in the real wage decreases the number of individuals willing to work e. slopes downward to illustrate that the availability of workers is directly proportional to the real wage
If a good is rationed, we can assume that
a. quantity supplied is greater than quantity demanded b. the price of the good is above its equilibrium level c. a price floor has been imposed on the market d. an excess supply of goods exists e. quantity supplied is less than quantity demanded