The usefulness and relative simplicity of the supply and demand model is often used
A. even though, strictly speaking, few industries in the U.S. are governed by perfect competition.
B. because nearly every major industry in the U.S. is governed by perfect competition.
C. because nearly every major industry in the U.S. is governed by monopoly.
D. even though it has no connection to economic reality.
Answer: A
You might also like to view...
People have incentive to efficiently and effectively use land in the public domain or held by a communal group
Indicate whether the statement is true or false
In the basic 45° line model, what is the effect of a decrease in the price level?
A. The expenditure line will shift downward. B. The expenditure line will shift upward. C. There will be movement to the left on the expenditure line. D. There will be movement to the right on the expenditure line.
The value of price elasticity of demand is negative because it indicates
A. the inverse relationship between the price offered and the quantity demanded for the good. B. that the changes in quantity demanded are much less compared to the changes in price for this good. C. the direct relationship between the price and consumer surplus from the good. D. that the value of the consumer surplus is negative for this good.
The view that inappropriate monetary policy was the main reason for the depth of the Great Depression in the United States is most closely associated with
A. the monetarist view. B. the rational expectations theory. C. the mainstream view. D. the real business cycle theory.