A characteristic that is important, but not essential to defining a perfectly competitive market is:
A. goods are standardized.
B. buyers and sellers are price takers.
C. firms can freely enter and exit the market.
D. All of these are necessary to define a perfectly competitive market.
C. firms can freely enter and exit the market.
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If you want to vote for the management of the corporation, you should buy
A) common stock. B) preferred stock. C) bonds. D) either common stock or preferred stock.
Between the years 2000 and 2010, the price of cars increased substantially as automobile companies added new and improved features and increased the power of car engines. If cars are included in the fixed basket of goods used to calculate the Consumer Price Index, it will fail to reflect true changes in the cost of living of an average consumer because of the: a. new goods bias. b. substitution
bias. c. quantity bias. d. quality bias.
If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP by $200 million, then by how much would they have to change taxes?
a. -$240 million b. -$200 million c. -$180 million d. -$50 million
Idiosyncratic risk:
A. is unique to a particular company or asset. B. is not generally absent from index funds. C. can not be eliminated through diversification. D. All of these are true.