A perfectly competitive market is one in which:
A. fully informed, price-taking buyers and sellers easily trade a standardized good or service.
B. fully informed, price-making buyers and seller easily trade a standardized good or service.
C. uninformed, price-taking buyers and sellers easily trade a standardized good or service.
D. uninformed, price-making buyers and seller easily trade a standardized good or service.
A. fully informed, price-taking buyers and sellers easily trade a standardized good or service.
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If the interest rate on euro-denominated assets is 13 percent and it is 15 percent on peso-denominated assets, and if the euro is expected to appreciate at a 4 percent rate,
for Manuel the Mexican the expected rate of return on euro-denominated assets is A) 11 percent. B) 13 percent. C) 17 percent. D) 19 percent.
If a monopolist sets her output such that marginal revenue, marginal cost and average total cost are equal, economic profit must be:
A) negative. B) positive. C) zero. D) indeterminate from the given information.
Policies adopted by the Truman administration effectively avoided inflation during the Korean War. These policies included:
a. increased personal and corporate tax rates. b. price and wage controls. c. reduced purchases of government debt by the Federal Reserve. d. discontinuance of the practice of "pegging" interest rates. e. All of the above.
From the economist's perspective, "market failures" basically arise when:
A. the market system is unable to adapt to or to accommodate change. B. the quantity demanded for a good or service is greater than the quantity supplied of the good or service. C. demand and supply do not accurately reflect all the benefits and all the costs of production. D. the quantity supplied of a good or service is greater than the quantity demanded for a good or service.