Economists consider the model of perfect competition useful because:
a. it is a standard for analyzing producer and consumer benefits.
b. its assumptions exactly fit into actual conditions in some markets.
c. its assumptions can be easily replaced with realistic ones.
d. it is a standard for analyzing consumer choices.
A
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Monetarists believe that the type of monetary policy that would lead to greater economic stability is
A) a money supply rule. B) a constant money supply. C) a counter-cyclical monetary policy. D) a pro-cyclical monetary policy.
By comparing the market value of livestock, corn, wheat and oats in 1880 to 1900, one can see that agricultural growth in the South did not occur
Indicate whether the statement is true or false
According to the equation of exchange, if real Gross Domestic Product (GDP) is $25 billion, the money supply is $10 billion, and the price index equals 2, then the income velocity of money is
A) 5. B) 10. C) 25. D) 50.
Demand for Shell gasoline will increase if the price of:
A. Motor vehicles increases. B. BP gasoline increases. C. BP gasoline decreases. D. Shell gasoline decreases.