Which of the following is not a characteristic of "perfect" markets?
A) Buyers and sellers can transact with each other directly if transaction costs are set at an appropriate level.
B) Securities are infinitely divisible.
C) Buyers and sellers know the true quality of what they are buying and selling.
D) All of the above are characteristics of perfect markets.
A
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Economic growth is the result of all of the following EXCEPT
A) technological change. B) capital accumulation. C) opportunity cost. D) investment in human capital.
Moral hazard is
A) the tendency for people to enter into agreements in which they can use their private information to their own advantage and to the disadvantage of the less informed party. B) when one of the parties to an agreement has an incentive after the agreement is made to act in a manner that brings additional benefits to himself or herself at the expense of the other party. C) a situation in which only bad quality items are bought and sold. D) an action taken outside a market that conveys information that can be used by that market.
Which of the following statement is true?
a. The demand for Cheerios is less elastic than the demand for cereal b. The demand for gas is more elastic in the short-run than in the long-run c. The demand for puma shoes is more elastic than the demand for shoes d. Products with many complements have a more elastic demand
Which of the following correctly describes the national debt?
a. The excess of annual federal expenditures over annual federal tax revenues. b. Annual federal expenditures less annual federal tax revenues plus foreign U.S. bonds purchases. c. The total amount of money owed by the federal government. d. None of the above.