Which of the following is not an assumption of perfectly competitive markets?
A) There are many sellers and many buyers, all of which are small relative to the market.
B) Each firm produces a similar but not identical product.
C) There are no barriers to new firms entering the market.
D) The products sold by all firms in the market are identical.
Answer: B
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Exports are positively related to domestic income and negatively related to the exchange rate
Indicate whether the statement is true or false
If the market price of a product falls and as a result total revenue of firms falls, we can conclude that
A) demand is elastic in this price range. B) the product's price is above the midpoint of its demand curve. C) demand is inelastic in this price range. D) the demand curve is horizontal.
Capital flight raises both a country's exchange rate and its interest rate
a. True b. False Indicate whether the statement is true or false
Which of the following examples would most likely be an unintended consequence of rent control?
a. Most of the apartments in a building are vacant. b. A landlord is known for renting to people who often are considered “undesirable.” c. Most of the apartments in a building are in a deteriorated state. d. A landlord decides to put in new plumbing for an entire apartment complex.