When there are large numbers of buyers and sellers, then
A) the products sold must look identical.
B) firms will move labor and capital in pursuit of profit-making opportunities to whatever business venture gives them the highest return on their investment.
C) no one buyer or seller has any influence on price.
D) consumers are able to find out about lower prices charged by other firms.
Answer: C
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A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates
A) the law of supply. B) the law of demand. C) a change in supply. D) the nature of an inferior good.
The primary trading partner of the United States is
a. Japan b. Mexico c. Canada d. Britain e. Korea
Answer the following statement(s) true (T) or false (F)
1.The natural rate hypothesis states that the economy will self-correct to the natural rate of unemployment. 2.An unanticipated rise in the inflation rate makes real wages rise. 3.Over time, an increase in aggregate demand will shift the short-run Phillips curve to the right. 4.Adaptive expectations are an individual’s belief that the recent information on inflation and unemployment are poor indicators of the future. 5.A decrease in energy prices would be considered a positive supply shock.
The Fed directly controls long-term interest rates
Indicate whether the statement is true or false