In which of the following ways are buyers and sellers similar in a perfectly competitive market?
a. They are both price setters.
b. They are both price takers.
c. They both have difficulty entering the market.
d. They both have difficulty exiting the market.
b. They are both price takers.
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If the mangers of Special Cakes, a large bakery, acquire an egg farm to produce the eggs for their cakes, the managers of Special Cakes are likely to experience all of the following except which one?
A) an increase in their required areas of expertise B) an increase in managerial diseconomies C) a decrease in managerial diseconomies D) an increase in the complexity of coordination of Special Cakes
According to economic analysis, while making a decision, an individual compares the benefits expected from one option with the benefits expected from other options
a. True b. False Indicate whether the statement is true or false
The United States Constitution states that
A. Congress and the President must agree on spending. B. a law must be passed to approve spending for a government activity that Congress and the President agree on. C. a law must be passed to approve spending for a government activity. D. the President may spend money according to his/her own priorities.
If the economy is experiencing inflation, then the most appropriate government policy would be to:
A. shift the aggregate demand curve by using a tax increase coupled with spending cuts. B. shift the aggregate demand curve by using a tax increase coupled with more spending. C. shift the aggregate demand curve by using a tax cut coupled with spending cuts. D. shift the aggregate supply curve by using a tax cut coupled with more spending.