If there are a large number of firms, each of which is so small that it takes the market price as given, then the market is characterized by:
A. informed buyers and sellers.
B. perfect competition.
C. no externalities.
D. efficiency.
Answer: B
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If a firm in the U.S. wants to purchase 50,000 yuan worth of raw materials from a Chinese firm, how many dollars would it have to transfer to the firm? Assume that one dollar exchanges for 6 yuan in the foreign exchange market
A) $8333.33 B) $7,500 C) $6,773.21 D) $9,663.22
In the aggregate demand/aggregate supply model, a country's full-employment real GDP is represented by:
a. prices. b. aggregate demand. c. aggregate supply. d. an increase in the general level of prices.
The implementation lag is _____ for fiscal than for monetary policy; the lag before the effects of monetary policy on real output and unemployment is ____ than for its effects on real output and unemployment:
a. Longer, long and variable b. Longer; relatively short and predictable c. Shorter; long and variable d. Shorter; relatively short and predictable
Economic growth is likely to be faster when
a. higher tax rates are imposed on high income individuals in order to provide greater cash payments to the poor. b. domestic markets are opened to foreign sellers and foreign investors. c. the supply of money is increased rapidly so individuals have more money to spend. d. dramatic changes in political and legal institutions occur often.