A requirement of perfect competition is that
i. many firms sell an identical product to many buyers.
ii. there are no restrictions on entry into (or exit from) the market, and established firms have no advantage over new firms.
iii. sellers and buyers are well informed about prices.
A) i only
B) i and ii
C) iii only
D) i and iii
E) i, ii, and iii
E
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A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. How many transactions must the market maker make if he wants to maximize his profits?
a. 1 b. 2 c. 3 d. 4
One person's use of common resources does not reduce the enjoyment other people receive from the resource
a. True b. False Indicate whether the statement is true or false
In 2009, the top 1 percent of income earners
a. made about 13 percent of all income. b. paid about 22 percent of all taxes. c. made over 2.5 times the percentage of all income earned by the lowest quintile. d. All of the above are correct.
Which of the following are key elements to the quantity theory of money and prices?
a. Real GDP is constant; velocity is constant; increase in money supply and price level are not proportional. b. Real GDP varies; velocity varies; increase in money supply and price level are not proportional. c. Real GDP is constant; velocity is constant; increase in money supply and price level are proportional. d. Real GDP is constant; velocity varies; increase in money supply and price level are proportional.