Which statement about competition is true?
A. To have competition, no firm is large enough to have any influence over price.
B. There is little competition between firms in the United States.
C. The American automobile industry would be considered competitive if there were at least four firms in the industry.
D. There is no competition in American industry.
A. To have competition, no firm is large enough to have any influence over price.
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Suppose there are only two kind of cars in the market for used cars: lemons and good cars. A lemon is worth $1,000 both to its current owner and to anyone who buys it. A good car is worth $8,000 to its current and potential owners
Buyers can't tell whether a car is a lemon until after they have bought the car, and there is no warranty. What is the prevailing price of a used car? A) $8,000 B) $1,000 C) $4,500 D) The prevailing price depends on how many lemons and how many good cars are traded.
The creation of a lender of last resort in the United States
A) occurred in response to banking panics. B) was mandated in the U.S. Constitution. C) occurred in response to the S&L crisis of the 1980s. D) has been recommended by the Treasury in its report of late 1992.
In the early 2000s, there was a strong black market for Chinese yuan. It is widely held that the Chinese yuan is undervalued. Based on this information, we know that China:
A. has flexible exchange rates. B. does not allow complete convertibility of its currency. C. has partially flexible exchange rates. D. has fixed but convertible exchange rates.
Refer to the information provided in Figure 8.8 below to answer the question(s) that follow. 
Figure 8.8 Refer to Figure 8.8. If this farmer is producing the profit-maximizing level of output, her marginal cost is
A. $2. B. $8. C. $9. D. $12.