Which of the following correctly explains why sellers in a perfectly competitive market are price takers?
A. There are few sellers, and so they have the power to take whatever price they want.
B. There are many sellers, and so the market process generates an equilibrium price that cannot be influenced by any one seller. Thus they have no choice but to take the price generated by the market process.
C. Sellers in a competitive market have the power to influence price by colluding with one another and using quotas to limit overall market output and thus raise price.
D. Individual buyers in a competitive market have the power to influence price, and thus can impose prices and other conditions on powerless sellers.
Answer: B
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As of 2011, which of the following was the largest stock exchange in terms of total value traded?
A) the New York Stock Exchange B) London Stock Exchange C) Shanghai Stock Exchange D) Tokyo Stock Exchange
Which of the following statements is consistent with a decrease in supply?
A) Prices of raw material inputs have increased. B) There has been an advance in technology. C) Consumers' incomes have increased. D) The market price has decreased.
A nationally chartered bank is a commercial bank that receives its charter from the Comptroller of the Currency and is subject to both federal law and the laws of the state in which it operates
Indicate whether the statement is true or false
A single bank is limited in its ability to create money because
a. loan recipients usually take the proceeds of the loan in cash. b. the FDIC will not permit it to create money unless the loans are guaranteed by the federal government. c. the money loaned will probably be deposited in another bank. d. federal legislation prohibits banks from creating money except to finance international trade.