Consumers do not have a strong preference for the output of one seller over that of another in a perfectly competitive market because:
A. there a large number of firms in the market.
B. the firms sell a standardized product.
C. there are no barriers to entry.
D. an individual firm has control over price.
Answer: B
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The portion of unemployment that is attributable to an overall decline in the economy's business activity is called: a. frictional unemployment. b. underemployment
c. cyclical unemployment. d. structural unemployment.
According to purchasing-power parity, if over the course of a year the price level in the U.S. rises more than in Japan, then which of the following falls?
a. the U.S. real exchange rate, but not the U.S. nominal exchange rate b. the U.S. nominal exchange rate, but not the U.S. real exchange rate c. the U.S. nominal exchange rate and the U.S. real exchange rate d. neither the real exchange rate nor the nominal exchange rate
Labor and land are substitutes. If rent goes up and the amount of labor used goes down, we can assume that the
A. output effect outweighed the substitution effect. B. the substitution effect outweighed the output effect. C. the substitution effect and the output effect canceled each other out. D. there is no way to determine the relative weights of the substitution effect and the output effect.
Securities dealers that trade stocks and bonds ________ comprise the over-the-counter market
A) directly instead of electronically B) outside exchanges C) that have previously been sold D) valued at less than $1 each