Which one of the following statements is NOT true?
A) The classical model assumes that people suffer from money illusion.
B) The classical model assumes that no single seller of a commodity can affect its price.
C) The classical model assumes that pure competition exists.
D) The classical model assumes that people are motivated by self-interest.
A
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Which of the following statements is false?
A. The Dow Jones Industrial Average went down by 40 percent during the decade of the 1930s. B. Based on data from the period between 1926 and 2004, the probability of having a positive return on an investment in the stocks contained in the Dow Jones Industrial Average would have been 97.1 percent if the stocks had been held for 10 years. C. When reading the stock market page of a newspaper, if the column marked "Div." is blank, it means that the company does not currently pay out dividends. D. A stock that yields 4 percent is better than a stock that yields 5 percent, all else being the same.
Asymmetric information in a transaction can result in:
A. moral hazard. B. adverse selection. C. a lemons problem. D. All of these statements are true.
At the equilibrium price, buyers have bought all they want to buy, but sellers have not sold all they want to sell
a. True b. False Indicate whether the statement is true or false
If a firm is producing a given level of output in an economically efficient manner, then it must be the case that
A. this is the lowest cost method of producing that output. B. each input is producing its maximum marginal product. C. this output level is the most that can be produced with the given level of inputs. D. both a and c E. none of the above