"A market is said to be perfectly competitive when consumers can tell that some products are of better quality than others." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. A market is perfectly competitive when firms produce homogeneous products and consumers cannot differentiate the quality of the products produced by different firms.
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Which characteristic is associated with monopolistic competition?
A) collusion B) product differentiation C) small number of firms D) awareness of rival firms in the market
Answer the following statements true (T) or false (F)
1. Constant-dollar GDP can be converted into current-dollar GDP by multiplying the real GDP by the implicit price defoliators 2. The GDP does not include raw materials used up in the productive process. 3. The GDP makes no measurement of the deterioration of the natural environment. 4. National income is equivalent to total earnings in the form of wages, rent, interest, and profits. 5. Transfer payments are added to NI in the process of determining personal income.
Which statement about oligopoly is false?
A. Prices in oligopoly are predicted to fluctuate widely and frequently. B. One firm's behavior is a function of what its rivals do. C. Oligopolistic firms recognize their interdependence. D. A few firms play an important role in the sale of a product.
During the housing bust that began in 2006, the fewest foreclosures were among people with ______ mortgages.
a. subprime b. zero-down c. adjustable-rate d. fixed-rate